By Frank Spaulding, AI for Business Today | Tuesday, July 28, 2026
Today: a famous investor warns AI money is going in circles, Nvidia makes two giant bets, running your business on AI comes with legal risks, Big Tech is splitting into two camps, and fake AI doctors are spreading on TikTok now too. Let's get into it!
Jim Cramer Sounds the Bubble Alarm
A famous TV investor named Jim Cramer gave a warning this week. He says the way AI companies are financing each other looks a lot like the "dot-com bubble" from the early 2000s, when internet stocks crashed hard.
Here's what he means by "circular financing." Nvidia gives billions of dollars to AI companies. Those same companies then use that money to buy computer chips... from Nvidia! It's money going in a circle. Nvidia says these investments help the whole AI world grow and pay off over time. But Cramer worries the circle makes growth look bigger than it really is.
Here's the twist, though: another report from Morningstar says the AI boom is not slowing down at all. In fact, business spending on AI is helping the whole country's economy grow faster than expected. So is it a bubble, or is it a real boost to the economy? Probably a little bit of both, and that's exactly the tension worth watching over the next few months.
Nvidia Makes Two Massive Bets
Speaking of Nvidia, the company made two huge investments back to back. First, it's investing $1 billion in a South Korean company's AI computer center. Second, and even bigger, Nvidia is investing $5 billion in a company called Safe Superintelligence, started by Ilya Sutskever, one of the original leaders at OpenAI.
That's $6 billion in new AI bets from one company, in one stretch of news. Nvidia isn't just selling the computer chips everyone needs anymore. It's also buying pieces of the companies that use those chips, tying its own future even closer to how well the AI boom goes.
The Legal Risks of Running Your Business on AI
Here's something every business owner should hear. A new article warns that starting or running a business with AI comes with real legal risks you can't ignore.
Some AI tools now offer to run big parts of your business for you, like signing contracts, managing money, or even helping decide who to hire. But here's the catch: if the AI makes an expensive mistake, you, the business owner, are still legally responsible, not the software. The lesson is simple: let AI help you make faster, smarter decisions, but always have a human double-check anything with real legal weight.
Big Tech's Open Versus Closed AI Fight
The New York Times described a big divide happening inside Big Tech right now. On one side are companies betting on "open" AI models, the kind anyone can download and change themselves. On the other side are companies betting on "closed" AI models that they keep fully private and controlled.
This matters more than it sounds for your business. Open models are usually cheaper and more flexible. Closed models often come with more support and tighter security. Whichever side wins out will shape how much your business pays for AI tools for years to come.
Another Warning About Fake AI Doctors
A new report found that fake AI-generated "doctors" are gaining millions of views on TikTok, spreading health advice that isn't actually true. Researchers call it a huge danger to public safety.
This is the same kind of warning we covered yesterday about fake AI doctors on Facebook and Instagram. Now we know it's not just one app; it's spreading across social media and racking up millions of views. If someone in your family gets health advice from a video online, it's worth double-checking who, or what, is actually talking.
States Pass 14 New AI Healthcare Laws
Finally, some policy news. States have passed 14 new laws this year about how AI can be used in healthcare. Seven states now stop AI from approving medical procedures on its own. Five states banned AI chatbots from replacing real, licensed mental health professionals.
At the same time, the U.S. government's health department (HHS) announced it's using AI to speed up research on chronic diseases, including childhood cancer, hoping to find new treatments faster. So the government is putting up guardrails around AI in healthcare, while also leaning on AI to speed up medical research. Both things are happening at the exact same time.
The Big Wrap-Up
Jim Cramer compared AI's circular financing to the dot-com bubble, even as the AI boom keeps boosting the economy. Nvidia made two huge bets: $1 billion in a Korean AI project and $5 billion in Ilya Sutskever's new company. Running your business on AI carries real legal risk you need to manage carefully. Big Tech is splitting between open and closed AI models, which will shape your costs for years. Fake AI doctors are now a problem on TikTok too, not just Facebook. And states passed 14 new laws regulating AI in healthcare, even as the government leans on AI to speed up disease research.
Thank you. This is Frank, your AI for Business Today entrepreneur.