> Whether CoreWeave actually bought chips it doesn't need is speculative; whether they are incentivized to do so is not. That is clearly the case: if you are guaranteed that any excess capacity will be bought, a…
There are way too many straw man examples in this article that it distracts from the point the author is trying to make. A former jazz pianist and Buddhist monk who used psychedelics, the Spanish-speaker trying to sell…
> I think the main question about Corgi is: are they underpricing risk so severely that they go bust? And honestly, we have no idea. You should read up on what a risk retention group is and how it works. To me, it's…
> ...the arrangement incentivizes Coreweave to buy chips it doesn't need You state this as fact but this is just cynical speculation on your part. The less cynically speculative analysis is that Neoclouds like CoreWeave…
> I think they are exploiting an accounting loophole... With all due respect, you haven't articulated what that accounting loophole is. I've explained why the examples/comparisons you've made aren't equivalent according…
> To summarise my opinion, subjectively it seems like a better distinction could be made in GAAP to look through this agreement and others like it. There's two things here: accounting and disclosure. The accounting,…
> Is there any room to doubt/discuss whether GAAP rules could be improved? Looking at the structure of the deal and analyzing the risks is perfectly valid. Screaming "accounting subterfuge!" when this is simple GAAP…
No, it isn't and this is simple GAAP accounting. If GM sold cars to Hertz and then agreed to rent them from Hertz if Hertz was unable to rent them, it would not be consignment. It would be a sale and then purchase…
Your GM/Hertz comparison is not applicable here. Under GAAP accounting rules, GM wouldn't be able to book those as sales because it was obligated (or likely) to buy back the asset. Under the rules, this means the…
From an accounting perspective, this absolutely isn't a consignment agreement. The sale of the GPUs by Nvidia to CoreWeave is real. CoreWeave pays Nvidia cash and becomes the owner of the asset, so it's properly booked…
You're right that people aren't static, but we should also acknowledge there are lots of people who become rich and powerful and they don't do horrid things. Many are perfectly decent people who care for their families,…
In the future, nobody will have to work (thanks AI!) and we'll all be digital nomads roaming the earth living off of 0DTE option gainz and UBI. /s
> People do weird things when given sudden access to money or power. It's more that money and power enable you to be who you really are, and amplify your worst traits if you're lacking self-awareness. There are many…
> segways smoothly into a controversial if not outright false water down ("...basically nobody paid...") 501 returns out of 50 million filers in 1963, with the top 1% paying on average just ~16% in 1962. > before…
The actual data: in 1963, 501 out of around 50 million filers were affected by the top marginal rate. According to the Tax Foundation, the actual average effective tax rate for the top 1% of earners in 1962 was only…
> What I take serious issue with is the deceptive and uncharitable nature of your "correction", which didn't mention that the number I quoted was real and in effect up until 1963. "Reagan-era" is the 1980s. You were off…
> First, for accuracy: it was above 90% from WWII up until 1963. Reagan took office in 1981. Is it that difficult to acknowledge that you posted something that was inaccurate, and move forward from it? Also, as noted,…
First, for accuracy: the personal top marginal income tax rate during the Reagan-era was not 90%. When Reagan took office, it was 70%, which is where it had been since the 1960s. The The Economic Recovery Tax Act of…
> If you managed to learn more from your fast food than your humanities degree... It's not about learning "more". It's that earning a degree is an academic undertaking whereas working at a coffee shop is "real life".…
I can't help but wonder: what true "domain specialists" would work as hourly contractors to train AI that will replace them? I suspect the answer is: the people who have already lost their jobs.
But even the market for "photographers" is arguably in secular decline. Smartphones and AI have turned everyone into a photographer. The world is awash in visual content.
> At this point I honestly think you're not even trying to have a good faith discussion, but I'll bite this last one. Honestly, this sounds like a cop-out. I asked a legitimate question in response to your comment: who…
> While you practice the thing you want to learn, you will not feel good, especially not starting out. This honestly is a bit of an understatement, it really sucks and depending on the task, odds are you may want to lie…
[dead]
> Can you try and explain that again? Sure. How did the fact that the internet was a revolutionary, civilization-changing technology that produced some of the best investments in history cause housing to become…
> Whether CoreWeave actually bought chips it doesn't need is speculative; whether they are incentivized to do so is not. That is clearly the case: if you are guaranteed that any excess capacity will be bought, a…
There are way too many straw man examples in this article that it distracts from the point the author is trying to make. A former jazz pianist and Buddhist monk who used psychedelics, the Spanish-speaker trying to sell…
> I think the main question about Corgi is: are they underpricing risk so severely that they go bust? And honestly, we have no idea. You should read up on what a risk retention group is and how it works. To me, it's…
> ...the arrangement incentivizes Coreweave to buy chips it doesn't need You state this as fact but this is just cynical speculation on your part. The less cynically speculative analysis is that Neoclouds like CoreWeave…
> I think they are exploiting an accounting loophole... With all due respect, you haven't articulated what that accounting loophole is. I've explained why the examples/comparisons you've made aren't equivalent according…
> To summarise my opinion, subjectively it seems like a better distinction could be made in GAAP to look through this agreement and others like it. There's two things here: accounting and disclosure. The accounting,…
> Is there any room to doubt/discuss whether GAAP rules could be improved? Looking at the structure of the deal and analyzing the risks is perfectly valid. Screaming "accounting subterfuge!" when this is simple GAAP…
No, it isn't and this is simple GAAP accounting. If GM sold cars to Hertz and then agreed to rent them from Hertz if Hertz was unable to rent them, it would not be consignment. It would be a sale and then purchase…
Your GM/Hertz comparison is not applicable here. Under GAAP accounting rules, GM wouldn't be able to book those as sales because it was obligated (or likely) to buy back the asset. Under the rules, this means the…
From an accounting perspective, this absolutely isn't a consignment agreement. The sale of the GPUs by Nvidia to CoreWeave is real. CoreWeave pays Nvidia cash and becomes the owner of the asset, so it's properly booked…
You're right that people aren't static, but we should also acknowledge there are lots of people who become rich and powerful and they don't do horrid things. Many are perfectly decent people who care for their families,…
In the future, nobody will have to work (thanks AI!) and we'll all be digital nomads roaming the earth living off of 0DTE option gainz and UBI. /s
> People do weird things when given sudden access to money or power. It's more that money and power enable you to be who you really are, and amplify your worst traits if you're lacking self-awareness. There are many…
> segways smoothly into a controversial if not outright false water down ("...basically nobody paid...") 501 returns out of 50 million filers in 1963, with the top 1% paying on average just ~16% in 1962. > before…
The actual data: in 1963, 501 out of around 50 million filers were affected by the top marginal rate. According to the Tax Foundation, the actual average effective tax rate for the top 1% of earners in 1962 was only…
> What I take serious issue with is the deceptive and uncharitable nature of your "correction", which didn't mention that the number I quoted was real and in effect up until 1963. "Reagan-era" is the 1980s. You were off…
> First, for accuracy: it was above 90% from WWII up until 1963. Reagan took office in 1981. Is it that difficult to acknowledge that you posted something that was inaccurate, and move forward from it? Also, as noted,…
First, for accuracy: the personal top marginal income tax rate during the Reagan-era was not 90%. When Reagan took office, it was 70%, which is where it had been since the 1960s. The The Economic Recovery Tax Act of…
> If you managed to learn more from your fast food than your humanities degree... It's not about learning "more". It's that earning a degree is an academic undertaking whereas working at a coffee shop is "real life".…
I can't help but wonder: what true "domain specialists" would work as hourly contractors to train AI that will replace them? I suspect the answer is: the people who have already lost their jobs.
But even the market for "photographers" is arguably in secular decline. Smartphones and AI have turned everyone into a photographer. The world is awash in visual content.
> At this point I honestly think you're not even trying to have a good faith discussion, but I'll bite this last one. Honestly, this sounds like a cop-out. I asked a legitimate question in response to your comment: who…
> While you practice the thing you want to learn, you will not feel good, especially not starting out. This honestly is a bit of an understatement, it really sucks and depending on the task, odds are you may want to lie…
[dead]
> Can you try and explain that again? Sure. How did the fact that the internet was a revolutionary, civilization-changing technology that produced some of the best investments in history cause housing to become…