The AI chipmaker’s board of directors announced Jensen Huang’s departure days after it emerged he had an affair with a woman believed to be a Chinese spy.
They’ve been selling shovels to retailers, and buying advertising space claiming a gold rush. The retailers are borrowing money from the marketing firm to pay for the shovels.
Everyone bought shares in the shovel company, the retailer, and the marketing firm.
But there’s no gold, and nobody is buying shovels.
I know the circular part, but its the AI companies that need to go under and reneg on the orders to cause the collapse of nvidia. Nvidia wont do it on their own. And they are in fact selling an exceptional amount of shovels.
And they are in fact selling an exceptional amount of shovels.
To the retailers. They are selling wholesale to the retailers, on credit. They are lending, with extra steps.
Customers aren’t buying enough shovels to service even the interest on these debts. The retailers are not bringing in anywhere near the revenue necessary to make this process sustainable.
"Nvidia’s equity investments stood at $99 billion as of July 26, up sharply from a year earlier as it expands its financial backing across the AI sector.
Investments span frontier AI labs, cloud providers and infrastructure companies, including OpenAI, CoreWeave and Nebius.
Capital has increasingly become a key play for Nvidia.
In August, the company announced partnerships with major investment firms aimed at mobilizing more than $500 billion worth of financing for Nvidia’s graphics processing units (GPUs) and said it would provide up to $105 billion of conditional credit support for an OpenAI data center in Ohio. Nvidia also announced Thursday it is planning to acquire AI startup Hugging Face for $12.9 billion."
They are buying up shares all over the AI sector, which is essentially Nv lending them money, with which these companies can buy their GPUs.
These new GPUs are specifically made with tons of AI processing shit. I dont think they’re as good at gpu mining as the old graphics cards at least cost benefit wise as a substantial amoint of the cost now is the NPU stuff.
The stock will probably come down ya. Source they are over leveraged which could lead to bankruptcy though?
Wouldn’t it be more likely that the AI companies going down on their own impacts nvidia?
They’ve been selling shovels in a gold rush so bankruptcy on their own seems unlikely, but an impact on the stock yes.
They’ve been selling shovels to retailers, and buying advertising space claiming a gold rush. The retailers are borrowing money from the marketing firm to pay for the shovels.
Everyone bought shares in the shovel company, the retailer, and the marketing firm.
But there’s no gold, and nobody is buying shovels.
I know the circular part, but its the AI companies that need to go under and reneg on the orders to cause the collapse of nvidia. Nvidia wont do it on their own. And they are in fact selling an exceptional amount of shovels.
To the retailers. They are selling wholesale to the retailers, on credit. They are lending, with extra steps.
Customers aren’t buying enough shovels to service even the interest on these debts. The retailers are not bringing in anywhere near the revenue necessary to make this process sustainable.
Any sources that nvidia is giving them the GPUs on credit and not the AI companies using credit to give nvidia cash?
Here you go, pal
"Nvidia’s equity investments stood at $99 billion as of July 26, up sharply from a year earlier as it expands its financial backing across the AI sector.
Investments span frontier AI labs, cloud providers and infrastructure companies, including OpenAI, CoreWeave and Nebius.
Capital has increasingly become a key play for Nvidia.
In August, the company announced partnerships with major investment firms aimed at mobilizing more than $500 billion worth of financing for Nvidia’s graphics processing units (GPUs) and said it would provide up to $105 billion of conditional credit support for an OpenAI data center in Ohio. Nvidia also announced Thursday it is planning to acquire AI startup Hugging Face for $12.9 billion."
They are buying up shares all over the AI sector, which is essentially Nv lending them money, with which these companies can buy their GPUs.
Thanks, appreciated. Guess that could go bad.
Don’t forget the crypto bros who mine with GPUs are willing to snap up anything the AI datacenters haven’t nailed down.
Are these AI gpus even good at crypto mining? Definitely not cost benefit wise if they were retail price, but maybe clearance prices?
Yes, GPUs are quite good at crypto mining.
Crypto was the original reason behind GPU shortages and resulting skyrocketing prices from years ago.
TBF, GPUs have been overshadowed by low-overhead ASIC chips for crypto mining, but I’m sure some would grab discounted GPUs for mining in a heartbeat.
Oh, and there’s always the Chinese market for smuggled nVidia GPUs too.
These new GPUs are specifically made with tons of AI processing shit. I dont think they’re as good at gpu mining as the old graphics cards at least cost benefit wise as a substantial amoint of the cost now is the NPU stuff.