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NVIDIA frenemy relation with OpenAI and Oracle

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Re: NVIDIA frenemy relation with OpenAI and Oracle

#61

Post by cyanydeez »

jmole wrote: post #43

Isn't circular funding how the entire economy works? I can see how you could make an argument that this particular ouroboros has an insufficient loop area to sustain itself, or more significantly, lacks connection to the rest of the economy, but money has to flow in circles/cycles or it doesn't work at all.

Only when using non aligned intwrests, like government funding roads.

When interests directly align and parties are largely owned by the same people, its wash trading.

The point of wash trading is to make activity increase the value of an asset via a netzero activity. Since nothing is generated from the activity its circular, eg, nothing physical changes hands.

Crypto trading is the golden child of wash trading as the primary mode of increasing the value of an asset.

Its unsurprising then that the company that got rich on crypto wash trading is doing its own attempts to drive artificial demand.

Re: NVIDIA frenemy relation with OpenAI and Oracle

#62

Post by glitchc »

throw234678 wrote: post #20

This post is written with its intellectual fly open. I'm not sure whether it was partly AI-generated, or whether the author has spent so much time ingesting AI-generated content that the tells have rubbed off, but this article has: - Strange paragraph-lists with bolded first words. e.g. "The Cash Flow Mystery" - The 'It's not just X; it's Y' meme: "Buying Groq wouldn't just [...], it could give them a chip that is ac…

Why use a throwaway account if posting an honest critique?

Re: NVIDIA frenemy relation with OpenAI and Oracle

#64

Post by calvinmorrison »

buzzin_ wrote: post #32
kart23 wrote: post #3

The critiques of 'circular funding' don't really make sense to me. If you invest 20 billion and you get back 20 billion, your profit is the same. Sure your revenues look higher but investors have access to all that information and should be taking that into account, just like all the other financial data. Michael Burry is betting against AI growth translating into real profits as a whole, not the circular funding.

It's worse than that. One side of the "circle" is 40 billion, the other side is 300. Why not just subtract it, and say 260 billion is going one way. The real story is that Nvidia is accepting equity in their customers as a payment for their hardware. "What, you don't have cash to buy our chips? That's OK, you can pay by giving us 10% of everything you earn in perpetuity." This has happened before, let's call it the "…

> Here I'm talking about the bitcoin mining hardware when the said hardware first appeared.

even better, we take preorders, while we delay for 1 year, we run the ASICs ourselves with way outsized TH/s power compared to the world. Once we develop the next one, we release the 'new' one to the public with 1/10th of the power.

Re: NVIDIA frenemy relation with OpenAI and Oracle

#65

Post by wmf »

Since SRAM is typically built in logic fabs (like TSMC) alongside the processors themselves, it theoretically shouldn't face the same supply chain crunch as HBM.

DRAM and logic fabs are both sold out so replacing one with the other doesn't really help. And SRAM uses ~6x more silicon area than DRAM.

Groq may be undervalued but not for supply chain reasons.

Re: NVIDIA frenemy relation with OpenAI and Oracle

#66

Post by 0xbadcafebee »

throw234678 wrote: post #20

This post is written with its intellectual fly open. I'm not sure whether it was partly AI-generated, or whether the author has spent so much time ingesting AI-generated content that the tells have rubbed off, but this article has: - Strange paragraph-lists with bolded first words. e.g. "The Cash Flow Mystery" - The 'It's not just X; it's Y' meme: "Buying Groq wouldn't just [...], it could give them a chip that is ac…

Is this the new form of ad-hominem? ad-AI?

Re: NVIDIA frenemy relation with OpenAI and Oracle

#67

Post by blindriver »

This is what happens when highly confident uneducated people read slop from other uneducated people with an agenda (Twitter, Burry et al) and then regurgitate more slop.

There is no circular funding. There’s certainly circular speculation that is driving up the prices but the revenues are all accounted.

The DSO change is meaningless if you understand accounting.

The inventory building up is the cost of materials and incomplete inventory. It’s not chips sitting around waiting to be deployed.

> holding ~120 days of inventory seems like a huge capital drag to me.

Yeah I guess this guy who knows nothing about running a business like Nvidia is allowed to make confident statements like this despite no education or experience.

This article is garbage and he wasted his 48 hrs investigating the same things I read in another worthless tweet several weeks ago.

Re: NVIDIA frenemy relation with OpenAI and Oracle

#68

Post by lukebechtel »

glitchc wrote: post #62
throw234678 wrote: post #20

This post is written with its intellectual fly open. I'm not sure whether it was partly AI-generated, or whether the author has spent so much time ingesting AI-generated content that the tells have rubbed off, but this article has: - Strange paragraph-lists with bolded first words. e.g. "The Cash Flow Mystery" - The 'It's not just X; it's Y' meme: "Buying Groq wouldn't just [...], it could give them a chip that is ac…

Why use a throwaway account if posting an honest critique?

avoiding vindictiveness perhaps

Re: NVIDIA frenemy relation with OpenAI and Oracle

#69

Post by twoodfin »

IshKebab wrote: post #48

> However, Groq’s architecture relies on SRAM (Static RAM). Since SRAM is typically built in logic fabs (like TSMC) alongside the processors themselves, it theoretically shouldn't face the same supply chain crunch as HBM. > > Looking at all those pieces, I feel Oracle should seriously look into buying Groq. I don't see why. Graphcore bet on SRAM and that backfired because unless you go for insane wafer scale integrat…

Forget about DRAM vs. SRAM or whatever: How does a cheaper source of non-Nvidia GPUs help Oracle? They’re not training models or even directly in the inference business. Their pitch is cloud infra for AI, and today that means CUDA & Nvidia or you’re severely limiting your addressable market.

Re: NVIDIA frenemy relation with OpenAI and Oracle

#70

Post by whimsicalism »

throw234678 wrote: post #20

This post is written with its intellectual fly open. I'm not sure whether it was partly AI-generated, or whether the author has spent so much time ingesting AI-generated content that the tells have rubbed off, but this article has: - Strange paragraph-lists with bolded first words. e.g. "The Cash Flow Mystery" - The 'It's not just X; it's Y' meme: "Buying Groq wouldn't just [...], it could give them a chip that is ac…

HN is full of know-little blogspam, although rarely does it get top top like this one did.
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