Comment on The Big Short Guy Just Bet $1 Billion That the AI Bubble Pops
Scubus@sh.itjust.works 3 days agoItll be nvidia and openai primarily, id have to imagine
Comment on The Big Short Guy Just Bet $1 Billion That the AI Bubble Pops
Scubus@sh.itjust.works 3 days agoItll be nvidia and openai primarily, id have to imagine
Womble@piefed.world 3 days ago
It wont be Nvidia unless they play things incredibly badly, they're the only ones making actual profit by selling shovels in the goldrush.
Scubus@sh.itjust.works 3 days ago
Yeah, but dont they also have the largest promisory debt? Havent they loaned the most most money that they dont actually have?
Womble@piefed.world 3 days ago
From a quick look they have ~40B USD in liabilities and make ~115B USD gross profit. Being able to pay off the entirety off their debt with 4 months of profit seems pretty healthy to me.
Scubus@sh.itjust.works 3 days ago
Cool, in a not super cool way. Nvidia is kinda scummy but the work they do is valuable. I appreciate you dropping the facts on me, but im not sure how to feel about them.
Bronzebeard@lemmy.zip 3 days ago
They “loaned” money to companies that immediately turned around and used that money to buy their products… So they got the money back and are only maximum out the production costs of those units if the loaner can’t pay.
But if there is a bankruptcy, they’d be at the front of the line to collect
Septimaeus@infosec.pub 3 days ago
Pretty sure they meant “[have been] loaned” but you that’s an interesting point
jj4211@lemmy.world 3 days ago
Yeah, but can they handle the collapse of going back to the company before the AI boom? They’ve increased in market cap 5000%, attracted a lot of stakeholders that never would have bothered with nVidia if not for the LLM boom. If LLM pops, then will nVidia survive with their new set of stakeholders that didn’t sign up for a ‘mere graphics company’?
They’ve reshaped their entire product strategy to be LLM focused. Who knows what the demand is for their current products without the LLM bump. Discrete GPUs were becoming increasingly niche since ‘good enough’ integrated GPUs kind of were denting their market.
They could survive a pop, but they may not have the right backers to do so anymore…
Womble@piefed.world 3 days ago
Definitely a possibility! But dealing with "only being a normal profitable company" is a very different problem to "oops, we were selling $10 for $5 and VCs have stopped giving us money to burn, and people are using self hosted models too", which is the possible outcome for the big AI labs.