HN Reader

You would think the effect was the opposite. I think this is worse for OpenAI.

So far, the circular financing from Nvidia has been peanuts for the company. It's roughly equal to giving 5% discount on hardware, not a big deal when the profit margin is 70%. Trying to prop up new neoclouds and competition is a good idea.

As I understand it, the OpenAI investment was much bigger effective discount but still safe because Nvidia invests gradually in installments only when OpenAI invests in data centers: tit for tat. Maybe OpenAI wanted to get the money now and invest it later, as they seem to be running out of cash.

I think it would be healthy for everyone if the hype around this stuff would die down a bit. There's too much pressure to invest in hardware and too much uncertainty around the business case. I am excited to see what can be built but I hope a bunch of people don't have to get wiped out financially along the way.

the hit to microsoft the other day was pretty interesting

I saw reports attributing it to a miss on earnings from Azure but they were off by 0.4% on 39% growth. That's 39% instead of 39.4%. And the company stock dropped 10%. This is all of Microsoft - 10% down (!).

It has to tell you there are a LOT of people primed to sell in a hurry on bad news. The "bubble" talk subsided a lot after nVidia smashed earnings last quarter, but largely overlooked how much their whole situation is based on pent up demand. It completely masks the fundamentals.

I still feel like we're sitting on a volcano and seeing puffs of smoke and feeling earth tremors.

Possibly good for Nvidia as I have doubts OpenAI will be able to pay their massive IOUs in a timely fashion, if ever.

Did Oracle spin off Cerner yet?

The hits are coming closer.

Microslop CEO begging for AI $$$ because astronomical overprovisioning is becoming obvious, all big spenders frantically trying to hide CapEx from their books and hallucinate revenue projections like its Enron reloaded and Oracle is already getting sued by bondholders over AI spend [0].

It will be worse than the dot com bust.

0: https://www.reuters.com/sustainability/boards-policy-regulat...

I thought this was already revised? Jensen Huang said they’ll be investing more than ever:

> Nvidia is likely set to make its “largest ever investment” in ChatGPT firm OpenAI, despite reports that the deal may be under threat in recent weeks. The chip giant’s CEO, Jensen Huang, didn’t say exactly how big the investment would be, but said it would be “nothing like” the $100 billion figure mentioned in the September partnership agreement.

https://www.pcmag.com/news/nvidia-ceo-well-make-our-largest-...

How long after the collapse of OpenAI will the DDR situation come back to normal.

Down to levels as low as where they were a few days ago, lol