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The Great AI Web: How The Magnificent Seven Are Quietly Investing in Each Other — And Why It Smells Like a Bubble

Every bubble begins as a breakthrough.

In the 1920s, it was radio.In the 1990s,

it was the Internet.

In 2025 — it’s Artificial Intelligence.


But this time, it’s not startups fueling the frenzy. It’s seven giants who already own the future.


Act I – The Circle Forms

They call them The Magnificent Seven: Microsoft, Apple, Amazon, Alphabet (Google), Meta, Tesla, and NVIDIA.


Together they now make up roughly one-third of the entire S&P 500’s market cap (~33–37%) [Visual Capitalist 2025]. But their strength no longer comes from competition — it comes from mutual reinforcement. They’ve quietly built a financial and technological spider web that connects them all.


Here’s how it spins. NVIDIA builds the chips powering every major AI model. Microsoft, Amazon, and Google buy those chips to run their AI clouds. Microsoft invests billions in OpenAI, which runs exclusively on Microsoft Azure — using NVIDIA GPUs. Amazon and Google counter by investing in Anthropic, locking its models into their clouds. Meta spends $70–72 billion (2025 guidance) on data centers to train its open-source AI models — again, powered by NVIDIA. Apple integrates generative AI into every product while depending on the same chip and data supply chain.


Every dollar one spends becomes another’s revenue. Each “record AI investment” headline justifies the next.That’s not a market — that’s a feedback loop.


Act II – When Competition Turns Into Collusion

This isn’t rivalry anymore — it’s interdependence.


Microsoft’s multibillion-dollar OpenAI deal bought more than access — it bought narrative control. Google and Amazon’s investments in Anthropic are defensive chess moves to keep AI compute inside their own clouds. And NVIDIA’s stock surge pulls index ETFs higher, which in turn buy more NVIDIA, Microsoft, and Alphabet.

Seven players. One table.And they’re all betting with each other’s chips.


Act III – The Illusion of Infinite Growth

These companies are spending more than $350–$400 billion annually on AI infrastructure [Reuters 2025].


  • Alphabet: CapEx ~ $91–93B (2025 guidance)

  • Meta: CapEx ~ $70–72B

  • Microsoft, Amazon, Google: collectively >$200B on data centers


The logic is seductive: “We’re building the future — so costs don’t matter.”But when everyone builds the same future, the air gets thin at the top.


Act IV – The Self-Fueling Market

Every dollar that enters an S&P 500 ETF automatically buys these seven names. As their prices rise, their index weight increases → which forces passive funds to buy even more → which drives prices higher.


A perfect reflexive loop — price drives buying, buying drives price.

NVIDIA sells GPUs → Microsoft’s Azure expands → their stocks rise → ETFs buy more → repeat.It’s prosperity on autopilot — until the loop breaks.


Act V – The Warning Beneath the Shine

History whispers the same warning: every revolution starts with innovation — and ends with speculation.


Today’s AI web isn’t just an ecosystem — it’s a mirror maze. Every reflection makes the others look richer, safer, inevitable. But beneath the reflections lie harder questions:

Who’s earning real profits from this spending?What if AI monetization slows or regulation bites?How diversified is your portfolio if the same seven companies fund each other?


When one mirror cracks, the whole maze shakes.


Epilogue – The Intelligent Investor’s Reflection

AI may well transform humanity.But for an intelligent investor, the question is brutally simple: What’s my return on investment?


Because ideas can change the world —but stocks must change your wealth.

So before chasing the next AI headline, ask yourself:Am I investing in innovation — or just investing through it?


Your real risk doesn’t lie in missing the story. It lies in believing it too much.














Sources:


Here are direct links to the key sources I referenced:

 
 
 

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