Comment on Is OpenAI dead yet?

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givesomefucks@lemmy.world ⁨1⁩ ⁨day⁩ ago

Not really…

The reason it will domino is AI companies can’t afford the hardware, so Nvidia “invests” in AI companies and trades hardware for shares.

They have like 100 billion just in OpenAI, which they’re leveraging into loans to make more of the chips no one can afford.

If openai goes down, the banks call in the loans Nvidia has openai for collateral. So then Nvidia will have to sell all their other shares of other AI companies to cover the loans, and likely will have to drastically cut production of AI chips, driving the cost up.

Now all those other AI companies that Nvidia just sold, can’t afford the higher price, because they couldn’t afford a subsidized price along with shares.

As those companies fold, it makes even less people who would even want to buy those AI chips at any prices, driving Nvidia further down and maybe all the way to bankrupt

That’s when it starts fucking with index funds and the wider market

But all those shadow banks won’t really get hit. They’re not holding stocks to make money, they’re buried treasure chests filled with liquid assets in case of emergency. The only way they’d be hit is if the currency they’re held in collapses. Even then, that method almost always includes safety deposit boxes with precious metals/jewels to account for that

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