Comment by dylan604

Comment by dylan604 17 hours ago

6 replies

"Jensen Huang claims — without any real breakdown as to who is buying them — that NVIDIA has over $500bn in bookings for its AI chips, with little worry about whether there’s enough money to actually pay for all of those GPUs or, more operatively, whether anybody plugging them in is making any profits off of them."

Does NVIDIA care if the company that bought their chips cannot make money using their chips? As long as the company's money is transferred into NVIDIA's accounts, that's all that matters to NVIDIA.

cmiles8 17 hours ago

Unless it was NVIDIA that gave said company the money to buy said chips. The “money” transferring into NVIDIA’s accounts in many of these cases is NVIDIA’s money being used to buy its own chips.

Those sort of circular deals, at the scale they’re happening, is one of the things that’s freaking folks out at the moment.

  • maartin0 16 hours ago

    Out of interest, do you have any specific examples of this?

    • belZaah 9 hours ago

      The MS Azure deal is of the same nature. MS “invests” into OpenAI who then buys Azure services for the investment. OpenAI evaluation is increased and the musical chairs will continue for another round.

    • cmiles8 16 hours ago

      Nvidia “invested” up to $100B in OpenAI. OpenAI uses much/most of that money to buy NVidia chips.

mattnewton 16 hours ago

Investors assume that people will continue to buy their products, so yes presumably they do care that nvidia’s customers do not go bankrupt.

That’s before even getting into the fact that many of these gpu purchases were partially funded by equity.

  • belZaah 9 hours ago

    Investors, yes. The leadership, highly motivated to show massive revenue growth, not so much. It’s nothing new, telco industry has seen these mechanisms before, for example