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Cake day: June 30th, 2023

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  • givesomefucks@lemmy.worldtoTechnology@lemmy.worldIs OpenAI dead yet?
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    14 hours ago

    Not really…

    The reason it will domino is AI companies can’t afford the hardware, so Nvidia “invests” in AI companies and trades hardware for shares.

    They have like 100 billion just in OpenAI, which they’re leveraging into loans to make more of the chips no one can afford.

    If openai goes down, the banks call in the loans Nvidia has openai for collateral. So then Nvidia will have to sell all their other shares of other AI companies to cover the loans, and likely will have to drastically cut production of AI chips, driving the cost up.

    Now all those other AI companies that Nvidia just sold, can’t afford the higher price, because they couldn’t afford a subsidized price along with shares.

    As those companies fold, it makes even less people who would even want to buy those AI chips at any prices, driving Nvidia further down and maybe all the way to bankrupt

    That’s when it starts fucking with index funds and the wider market

    But all those shadow banks won’t really get hit. They’re not holding stocks to make money, they’re buried treasure chests filled with liquid assets in case of emergency. The only way they’d be hit is if the currency they’re held in collapses. Even then, that method almost always includes safety deposit boxes with precious metals/jewels to account for that






  • Well nVidia just sells the hardware to the AI companies, so even if the bubble pops, they won’t go bankrupt.

    Except all those companies are in an investor circle jerk with each other…

    If AI bursts it doesn’t just hurt nvidia’s sales of products used by AI.

    Nvidia has over $100 billion invested in OpenAI:

    https://www.cnbc.com/2025/09/26/nvidias-investment-portfolio.html

    And even more billions invested in other AI companies. Because the AI companies can’t afford to buy what Nvidia is selling at the price.

    This means Nvidia “owns” a bunch of those AI companies, and can take loans out on the valuation…

    If AI goes bankrupt, all those investments are worthless, which means banks call in the loans that used it as collateral. It could easily wipe out Nvidia.

    It’s not just one surface level thing, even tho that’s all you seem to have thought of. You’re worried about a couple hundred million in sales like it’s not sitting next to 100 billion dollar loan.

    Like bro, come on man…





  • So…

    It’s not a bubble because…

    “This is the largest infrastructure build-out in human history,” Huang said of active and promised data center projects. "And so the AI bubble is, comes about because the investments are large. And the investments are large, because we have to build the infrastructure necessary for all of the layers of AI above it."

    It’s something we’re sinking money into soley because we’ve already been sinking money into it, and we don’t want anyone else to get ahead of us even though literally no one has found a way to monetize it enough to make back prior investments let alone new investments…

    Like, he knows that’s literally the definition of an economic bubble, right?

    Is he just trying to grift dumb rich investors, or does he legitimately not understand his company could go bankrupt literally at any moment if the investor class ever comes back to reality?