Only if the line keeps going up. Ai companies have been “selling” chunks of themselves to NVIDIA for “cash” then these companies turn around and buy hardware from NVIDIA. When the crash eventually comes, NVIDIA will have some percentage of zero (or close enough to count) value company. Basically acting like a bank, just cutting the banks out of the process. NVIDIA shows revenue and the AI company churns their super-inflated value to be even more inflation.
nah, they’re basically the best shovel sellers around. practically all their deals take payment up front for the hardware (+lease obligation) on top of some form of constant monetization for the compute used a/o various types of financing schemes (that involve getting outside parties to foot the bill).
jensen knows this game very well and is playing everyone else superbly.
it’s obviously a bubble and they will correct along with everything else eventually but compared to the rest NVDA will likely come out far far ahead of everyone else because they bring in actual revenue.
OK, sure, theyre selling shovels but theyre lending a bajillion dollars in shovels for equity in unprofitable companies and when the bubble bursts they’ll have no cash and pieces of paper in defunct companies. Unable to meet their operating costs they’ll die or be pieced off. You can’t run a company off of IOUs.
And their local AI push (Nemotron, DGI Spark, RTX Spark, Huggingface, …) is all done to diversify before the crash.
Local AI is constantly getting better, both on server-grade hardware and on hardware regular users can actually own.
In fact, for Nvidia it’s better to have a solid standing with consumer-grade local AI. If Anthropic, Google and OpenAI manage to DIY their own AI chips, then Nvidia will lose a large portion of their revenue within a day.
Only if the line keeps going up. Ai companies have been “selling” chunks of themselves to NVIDIA for “cash” then these companies turn around and buy hardware from NVIDIA. When the crash eventually comes, NVIDIA will have some percentage of zero (or close enough to count) value company. Basically acting like a bank, just cutting the banks out of the process. NVIDIA shows revenue and the AI company churns their super-inflated value to be even more inflation.
nah, they’re basically the best shovel sellers around. practically all their deals take payment up front for the hardware (+lease obligation) on top of some form of constant monetization for the compute used a/o various types of financing schemes (that involve getting outside parties to foot the bill).
jensen knows this game very well and is playing everyone else superbly.
it’s obviously a bubble and they will correct along with everything else eventually but compared to the rest NVDA will likely come out far far ahead of everyone else because they bring in actual revenue.
OK, sure, theyre selling shovels but theyre lending a bajillion dollars in shovels for equity in unprofitable companies and when the bubble bursts they’ll have no cash and pieces of paper in defunct companies. Unable to meet their operating costs they’ll die or be pieced off. You can’t run a company off of IOUs.
And their local AI push (Nemotron, DGI Spark, RTX Spark, Huggingface, …) is all done to diversify before the crash.
Local AI is constantly getting better, both on server-grade hardware and on hardware regular users can actually own.
In fact, for Nvidia it’s better to have a solid standing with consumer-grade local AI. If Anthropic, Google and OpenAI manage to DIY their own AI chips, then Nvidia will lose a large portion of their revenue within a day.