News Summary

• A single moderate-to-large data center today uses AI chips costing billions of dollars.
• A single Nvidia Blackwell GPU in a modern AI chip cluster could cost as much as a new Tesla Model 3.
• Non-AI chip costs have also risen sharply, with both total spending and unit costs for CPU and memory chips at unprecedented levels.
• To fund their chip spending, AI companies have signed circular deals with each other — cross-investments and capacity commitments between companies like Microsoft, OpenAI, Google and Anthropic.