Comment on The Big Short Guy Just Bet $1 Billion That the AI Bubble Pops
Scubus@sh.itjust.works 3 days agoYeah, but dont they also have the largest promisory debt? Havent they loaned the most most money that they dont actually have?
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
Pretty sure they meant “[have been] loaned” but you that’s an interesting point
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.
Womble@piefed.world 3 days ago
I'm not a fan of them either, I wish AMD would step up and compete with them better (Just get ROCm into a good place FFS!), but they are definitely not one of the companies most exposed to an AI pop. They'll stop being insanely profitable but they are not anywhere near the position of openAI and the likes who have massive negative profit.
anomnom@sh.itjust.works 3 days ago
I guess the question is how much of their revenue is in cash, and how much is in credit from companies that may go bust and not finish paying Nvidia for what they already built and loaned.
Maybe I’m wrong about how that’s all working.