I hope it pops, but everyone is misquoting Nvidia. Pretty sure they said they will invest up to 100 billion, they never said a time frame and the wording implies that investment would be spread over time.
Still f ngreedia and closedai
How do fundraising drives like this work? Will OpenAI's parent company issue a new class of stock or something?
Infinite funding.
Now OpenAI can use this money that doesn't exist to build datacenters that no one wants built powered by infrastructure that doesn't exist, so they can offer a product no one wants to chase revenue that is impossible.
Isn't OpenAI also investing heavily into Nvidia? How the hell does that work? They're just circulating money around?
The full circle is actually Nvidia for the hardware, OpenAI for the software, Oracle for the infrastructure provider for the datacenters, and SoftBank for the financial support. Each one injects money into the other, it's called round tripping and it's the same thing that happened during the dot com burst.
Company A “buys” hardware from Company B. Company B simultaneously “invests” in infrastucture from Company A. Both record revenue — even though no real demand existed. The difference is that in reality this circle consists of various companies.
Yes, yes they are.
I’m not qualified to explain this well. But there’s the concept of velocity of money. The higher velocity that’s supposed to mean the economy is doing good. Generally it’s between lots of people so it’s spread out. In this case it’s only between a small handful of companies, and as soon as it starts drying up then bad things can happen really quickly.
They are reducing their previous deal, it used to be 100$$, now it is 30B$
And in other news, people drink water when thirsty.
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