I think Steve from Gamers Nexus broke this first…
Duh?
It was obvious to anyone with an IQ above room temperature mayonnaise.
The situation described in the report saw NVIDIA on the hook for an “avalanche” of GPUs from TSMC, for which it would have no immediate buyers. Part of the issue highlighted by Kress was also that these small-scale cloud providers NVIDIA was investing in could not afford to buy NVIDIA GPUs, meaning they, too, could be a financial dead end.
This is big. Nvidia also didn’t show up in last few weeks for OpenAI’s financing desperation. There were bigger 5090 shortages this summer, as rumour that datacenters were being built around them, after rtxpro shortages.
Nvidia circular financing started off the bubble. But it needs new bagholders, and its sales/extortion power plummets as its investments fail. OpenAI failure brings down the industry financial backers, though it makes GPUs/RAM cheap again.
If it’s legal then Nvidia has managed to grab huge shares in AI companies. If chips become cheap now, AI companies will make profits and Nvidia benefits from having the shares.
Expensive GPUs aren’t the reason they aren’t profitable.
it makes it easier for cloud services, though these will remain competitive. It makes it easier to escape the cloud too, or to directly rent GPU VM spaces.
Just billionaires doing billionaire things.
All the fish are swimming in the water. Bubble, bubble, bubble pop.
To bad this is all coming out on the weekend Markets not open
It’s not circular financing, it’s not a bubble you guys. This is all legit above table normal capiterlizum
“It’s inevitable. That’s why we have to pay the people under us to force it on the people under them. So get used to using it- or be left behind!”
It is right up until you report the “sales” numbers… Sales numbers can’t include your own money.
… Not to meme, but, why not both?
If you can barely tell the difference, things are moving in the wrong direction.
I mean that’s great and all, but AMD is selling everything they make. They have Zen 6 out and it’s going directly into servers.
CPUs aren’t doing the bulk of AI processing.
How do you know it’s not fueled by the rampant circular financing?
Isnt this market manipulation?
For the past 5 years Nvidia should have been highly regulated as a monopoly. What you’re seeing is what happens when regulation is let slide.
Yes
Coming soon: A class action lawsuit against NVidia for everyone that bought a graphics card between the dates of X and Y who will eventually receive a 15$ cheque in the mail 5 years from now.
While the lawyers get like $10,000 per
That is how doing actual work be
Nooooooo I want to feel cheated on by the corrupt system!
…WE KNOW.
It bears repeating… ;-)
Yeah, fair. It does. It would just have been helpful if articles like this had been written… a little sooner.
They were, just got ignored by most mainstream journalists and outlets. Ed Zitron and several others have been all over this for a while
Corporate media was too busy backing fascism.
Its funny because bloomberg has a video on them… Despite being the conpany who was trying to silence Gamers Nexus last year about the smuggling topic.
May the Flying Spaghetti Monster bless Gamers Nexus in pepetuity. That kind of intersection between raw intelligence and testicular fortitude is getting far too rare these days.
We’re lucky to have them.
Brown, black, or white?
Giant short-faced
Kodiak
Um… wasn’t this well known? They’d buy up struggling companies, then secure a purchase agreement for GPUs through those companies in order to inflate their sales figures. They did this. A lot.
I didn’t know they allegedly had more GPUs than they knew what to do with, which is what the report says. Up until now, the public knowledge has been that the AI bubble has been used to justify sketchy deals like circular financing in an attempt to chase the unlimited profits promised by the discovery of AGI. As though they had no trouble selling them, but wanted to sell them in a way that also cut them in on future AI advancements.
I am shocked. Shocked!
so basically act as LLC front companies.
This news will probably make the NVDA stock price go up.
I don’t think so… Pretty sure it’s illegal market manipulation… Someone should be going to jail for this one…
Preferably someone rich…
My summer child…
Sweet
Baby
Ray’s
The Sauce is the Boss -Abraham Lincoln
It’s weird how you can be so right and yet so wrong at the same time. Don’t get me wrong though: I don’t want the wrong part to be wrong. That’s not your fault.
This is more likely downward pressure on the stock. Not commenting on jail time, but this is showing holes in maintaining their extortionism, and its likely to bring down sales and margins.
It’s not though. Rules state that you can’t report your own money as “sales” If NVidia is putting money into start-ups just to have them spend that money on nvidia, that’s fraud. (Probably have to prove that that was the purpose…but I’m sure there’s an email…there’s always an email…)
They might be setting up Jensen (the one non white guy in all this?) to be the fall guy for any pending economic turmoil. Let’s see.
Not saying he is blameless, but that those in power might be getting ready to say everything is all his fault alone.
Isn’t (or wasn’t) he the CEO? I realize leadership taking responsibility isn’t as popular a concept as it once was, but it’s not like he’d be some low-level fall guy…
I meant that Trump, Altman, Musk, Thiel, Zuck, Ellison, Bessent will all say the economy crashing is because of Huang.
I would rate that assertion as “partially true”!
Well of course, if you want your shares to go up you want a company that can manipulate the market
