Nvidia's $750B in Deals Reignite Circular AI Fears (bloomberg.com)

I guess it gets bigger with each passing day. Tens of billions goes to Hundreds of billions.

They are just adding zeros to already obnoxious numbers that make no sense. The endgame is on.

At what point do I start taking money out of my VTI holdings and parking it in cash - there is no way the market keeps going up.

It's come to a point (or has it passed it) that these numbers are completely meaningless. One hundred billion here, $750B there, $1.2T over a year or so, toss in $300B for a few hyperscalers there. There's no imaginable scenario where these are actually backed up with real profit to where the investments make sense. Just passing the same hundred dollar bill among everyone and all booking it as revenue. I can't wait until it pops.

It is far better for society when companies like Nvidia spend their money rather horde it like Apple.

Nobody (including the dragon) benefits from sitting on piles of gold.

DRAM will get to the moon before we get ...

Alternative source https://finance.yahoo.com/technology/ai/articles/nvidia-plan...

> The concern is familiar: NVIDIA money funds customers who then buy NVIDIA chips.

Circular is a dumb way to describe it IMO, because it's not like both parties end up in the same place.

Nvidia is making trades for people to buy their GPUs.

Sometimes companies are trading stock for GPUs, sometimes money, other times something else.

In summary, Nvidia is selling GPUs.

OPEN AI is living true to their name and foundation principles. Non profit and NO PROFIT, lol.

I imagine nvidia is securing these loans on the hardware being bought?

So if the company defaults they can take the GPUs and servers etc and sell those.

can someone explain why this is actually bad?

nvidia spends X amount to invest in data centres or investments on the agreement that the counterparty spends Y amount back, the net delta is the actual amount of value being transferred aka Nvidia sells chips as usual despite the high numbers of X and Y?

The frontier labs do not have enough chips to meet demand, and AI demand is ferocious and climbing, so I'm not sure what the story is here

if demand for "safe" tokens explodes, this is a no brainier

if open source throws a wrench into the frontier revenue growth, then its gonna be biggest bubble explosion

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Nvidia had a free cash flow last quarter of $48.5 billion, a 36% quarter-over-quarter increase. $750B does not seem that huge in comparison. (Yes, the gravy train could theoretically stop anytime, but that still seems like a large but localized unwind rather than a wider economic crash.)

If you were NVDA and had that much cash on hand and wanted to grow your business, where would you put it?

If anything this means that the insane amounts spent on AI are just mostly virtual speculative stock deals and in reality the amount spent in AI is kinda normal.

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