Economist Tyler Cowen: Nvidia's multi-billion dollar AI investments act as 'buyer of last resort,' making the boom more durable, not a bubble
Prominent economist Tyler Cowen told the Prof G Markets podcast on Friday that Nvidia's multi-billion dollar investments across the AI industry, including a $10 billion commitment to Anthropic and orchestrating over $500 billion in third-party capital for AI infrastructure, act as a "buyer of last resort" for the sector. He argues this financial backing makes the AI boom more durable rather than indicating a bubble, comparing it to the capital-intensive early stages of the automobile industry. Cowen noted that new technologies often require substantial capital to get off the ground, and Nvidia's strategy helps finance data centers and computing infrastructure that run on its systems. He dismissed concerns that this self-reinforcing investment cycle makes the boom artificial, emphasizing that the core product (AI) clearly works.
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