OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems • Hacker News Board

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#41

Post by toomuchtodo » Mon, Sep 22, 2025, 4:56 PM UTC

vlovich123 wrote: post #27

xnx wrote: post #10

What does this mean? "To support the partnership, NVIDIA intends to invest up to $100 billion in OpenAI progressively as each gigawatt is deployed."

Nvidia is buying their own chips and counting it as a sale. In exchange they’re maybe getting OpenAI stock that will be worth more in the future. Normally this would count as illegally cooking the books I think but if the OpenAI investment pays off no one will care.

What if it doesn't?

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#42

Post by fufxufxutc » Mon, Sep 22, 2025, 4:56 PM UTC

klysm wrote: post #36

fufxufxutc wrote: post #24

In accounting terms, this is a shady business practice known as "round tripping" where you invest in a company for the sole purpose of them buying your product. It allows you to count your revenue multiple times.

Is it counting revenue multiple times? It's buying your own products really, but not sure how that counts as double counting revenue

The "investment" came from their revenue, and will be immediately counted in their revenue again.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#43

Post by gpm » Mon, Sep 22, 2025, 4:56 PM UTC

brcmthrowaway wrote: post #21

eagerpace wrote: post #2

Where is Apple? Even from an investment perspective.

Losing the race

Right, but is the race to the pot of gold, or the stoplight (in which case by "losing" they save on gas)?

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#44

Post by HDThoreaun » Mon, Sep 22, 2025, 4:57 PM UTC

TheRealGL wrote: post #34

Did I miss the part where they mention the 10 large nuclear plants needed to power this new operation? Where's all the power coming from for this?

Build this thing in the middle of the desert and you would need around 100 sq mile of solar panels + a fuck load of batteries for it to be energy independent. The solar farm would be around $10 billion which is probably far less than the gpus cost

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#45

Post by lumost » Mon, Sep 22, 2025, 4:58 PM UTC

klysm wrote: post #36

fufxufxutc wrote: post #24

In accounting terms, this is a shady business practice known as "round tripping" where you invest in a company for the sole purpose of them buying your product. It allows you to count your revenue multiple times.

Is it counting revenue multiple times? It's buying your own products really, but not sure how that counts as double counting revenue

It's real revenue, but you are operating a fractional reserve revenue operation. If the person your investing in has trouble, or you have trouble - the whole thing falls over very fast.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#46

Post by rsstack » Mon, Sep 22, 2025, 4:58 PM UTC

klysm wrote: post #36

fufxufxutc wrote: post #24

In accounting terms, this is a shady business practice known as "round tripping" where you invest in a company for the sole purpose of them buying your product. It allows you to count your revenue multiple times.

Is it counting revenue multiple times? It's buying your own products really, but not sure how that counts as double counting revenue

Customer A pays you $100 for goods that cost you $10. You invest $100-$10=$90 in customer B so that they'll pay you $90 for goods that cost you $9. Your reported revenue is now $100+$90=$190, but the only money that entered the system is the original $100.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#47

Post by selectodude » Mon, Sep 22, 2025, 4:58 PM UTC

fufxufxutc wrote: post #24

In accounting terms, this is a shady business practice known as "round tripping" where you invest in a company for the sole purpose of them buying your product. It allows you to count your revenue multiple times.

This is some Enron shit. Lets see NVDA mark to market these profits. Keep the spice flowing.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#48

Post by catigula » Mon, Sep 22, 2025, 4:58 PM UTC

TheRealGL wrote: post #34

Did I miss the part where they mention the 10 large nuclear plants needed to power this new operation? Where's all the power coming from for this?

Consumer electric grids.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#49

Post by zuInnp » Mon, Sep 22, 2025, 4:58 PM UTC

Yeah, who cares about the enviroment... who needs water and energy, if you AI agent can give you better pep talk

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#50

Post by weego » Mon, Sep 22, 2025, 4:58 PM UTC

fufxufxutc wrote: post #42

klysm wrote: post #36

Earlier quoted context omitted.

Is it counting revenue multiple times? It's buying your own products really, but not sure how that counts as double counting revenue

The "investment" came from their revenue, and will be immediately counted in their revenue again.

In this case it seems that if we're being strict here the investment could then also show up as fixed assets on the same balance sheet