PODCAST EPISODE 352 – The AI Money Loop Explained: Are Investors Missing the Risk?
In this episode of More Than Commas, Cory breaks down one of the biggest questions in investing today: Is AI in a bubble?
Using clarity, and a Three Stooges analogy, Cory explores how companies like OpenAI, Nvidia, Oracle, and others have created a tightly interwoven financial ecosystem, one that looks innovative, but also suspiciously like a closed loop of money, growth assumptions, and circular investments.
He explains how “round tripping” works, why OpenAI loses money on every prompt you enter, and how Nvidia’s rapidly aging chips complicate long-term value. Drawing parallels to the dot-com boom, Cory highlights what’s different this time, and what isn’t. Most importantly, he offers clear guidance: diversify, understand the risks beyond hype, and stay grounded in timeless financial principles.
A timely deep-dive for anyone watching AI stocks soar and wondering what’s really happening behind the scenes.
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Hank Green (The State of the AI Industry is Freaking Me Out): https://www.youtube.com/watch?v=Q0TpWitfxPk
The Knowledge Project (Anthony Scilipoti: The Bubble No One is Talking About): https://podcasts.apple.com/us/podcast/anthony-scilipoti-the-bubble-no-one-is-talking-about/id990149481?i=1000733851707
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Timestamps:
01:00 – Three Stooges clip and fractional-reserve analogy
02:20 – How banks differ from AI company structures
03:10 – OpenAI, Nvidia, Oracle and the AI investment loop
05:30 – Visualizing round-tripping (Bloomberg + Hank Green)
06:55 – Why AI firms lose money on every user interaction
08:20 – Lessons from the dot-com bubble and infrastructure
09:40 – Diversification: why owning the whole market matters
11:20 – Closing thoughts: bubble, boom, or something bigger?
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