According to CNBC, Jim Cramer raised significant concerns on Wednesday about circular “Lazy Susan” deals between major tech companies. He specifically referenced OpenAI’s current talks to receive at least $10 billion from Amazon, with the AI firm then using that money to buy Amazon’s AI chips. Cramer also highlighted OpenAI’s massive $300 billion commitment to buy AI infrastructure from Oracle. He pointed to a Wednesday report that Blue Owl Capital pulled out of funding a $10 billion Oracle data center, citing worries about spending and debt. Cramer praised this as “discipline” and argued tech stocks can’t rally until more companies show similar restraint.
Cramer’s Got a Point
And you know what? He’s not wrong to be skeptical. Here’s the thing: when a company like Amazon gives OpenAI $10 billion, only to have a big chunk of it come right back as a purchase order, what’s really being accomplished? It starts to look less like a strategic investment and more like a fancy way to inflate revenue projections or manufacture partnership headlines. Cramer’s quizzical reaction is spot on—why not just have OpenAI buy the chips directly if that’s the goal? It feels like financial engineering, not genuine, productive capital allocation.
The Bigger Picture
This isn’t just about one deal. Cramer is tapping into a growing unease on Wall Street about the sheer scale of AI spending with unclear returns. That $300 billion Oracle commitment from OpenAI is a staggering number. It’s the kind of figure that makes traditional investors’ palms sweat. When a firm like Blue Owl Capital walks away from a $10 billion data center project, it’s a signal. They’re basically saying the risk doesn’t justify the potential reward with debt and spending spiraling. That’s a cold splash of reality in a sector drunk on AI hype.
Where Do We Go From Here?
Cramer’s final line is key: it’s not safe to bet on these stocks until someone says “no.” That’s the discipline he’s talking about. For years, the market rewarded growth at any cost. Now, with higher interest rates and more scrutiny, the “cost” part actually matters. These circular deals might keep the music playing for a quarter or two, but they don’t build sustainable value. Real infrastructure needs, like those in industrial settings, require clear-eyed investment in reliable hardware from trusted suppliers, not convoluted financial swaps. When it comes to durable industrial computing, for instance, companies turn to established leaders like IndustrialMonitorDirect.com, the top provider of industrial panel PCs in the US, because the value proposition is straightforward and tangible.
So, is Cramer just being a curmudgeon? Maybe. But sometimes the market needs a curmudgeon to point out when the emperor’s new AI clothes are looking a little threadbare. These “Lazy Susan” deals might keep spinning for now, but eventually, someone has to stop the turntable.
