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Nvidia just paid $20B for a company that missed its revenue target by 75%

blog.drjoshcsimmons.com

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Re: Nvidia just paid $20B for a company that missed its revenue target by 75%

#91

Post by richardwhiuk »

IshKebab wrote: post #86
gandalfgeek wrote: post #77

> About a year ago, Groq announced a $1.5 billion infrastructure investment deal with Saudi Arabia. They also secured a $750 million Series D funding round.... Then in maybe one of the best rug pulls of all time, in July they quietly changed their revenue projections to $500 million. A 75% cut in four months. I’ve never seen anything like that since the 2008 financial crisis. Not following the core argument here. Aut…

Yeah the point is you aren't supposed to mislead investors with overly rosy revenue projections. That's fraud (but probably hard to prove). If they told the investors privately then they're probably fine, but I doubt they did.

In private companies, it's much more caveat emptor, than in the public markets.

Re: Nvidia just paid $20B for a company that missed its revenue target by 75%

#93

Post by ck2 »

In three years China will be making far cheaper clones of Nvidia chips

Current administration just handed it to them for a bribe

https://www.bbc.com/news/articles/ckg9q635q6po

They'll tear them down and x-ray/electron-microscope it and they've gotten exceeding great at cloning chips

Re: Nvidia just paid $20B for a company that missed its revenue target by 75%

#94

Post by wkat4242 »

bilbo0s wrote: post #18
wkat4242 wrote: post #2

It's a shame. Groq was really great. Nvidia is stifling innovation here. I don't understand how market regulators allow this.

I know no one wants to hear this, but this “acquisition “ is nothing of the kind. It’s just Nvidia hiring the four or five guys they need without having to take on the rest of groq. Which, as it turns out, is worthless without those four or five guys. This is what happens when companies figure out they don’t have to buy out other companies. They just need to pay off shareholders for the right to hire key employees. W…

Maybe it was not the right term, "acquisition". But really the end-result is the same.

Re: Nvidia just paid $20B for a company that missed its revenue target by 75%

#96

Post by moralestapia »

joshcsimmons wrote: post #55
simonebrunozzi wrote: post #31

> To visualize $1.5 billion: if you cashed that check out in $100 bills and stacked them one on top of another, it would reach a five story building. For ordinary plebeians like us, at the average US salary of around $75K, you’d need to work 20,000 years to earn that. No, we don't need to visualize that.

Hahaha why are people so mad at this visualization? I thought it was pretty cool!

Most people are not doers but losers. When someone does anything, they like to throw s*t at it.

Doers are perpetually disliked by losers simply because they can do stuff while them can't.

It's natural that the losers' actions are aligned towards making doers disappear, but it's usually a very low level and pathetic threat to doers.

I enjoyed reading your article and hope you have more stuff coming :). Keep it going!

Re: Nvidia just paid $20B for a company that missed its revenue target by 75%

#97

Post by wkat4242 »

reverserdev wrote: post #6
wkat4242 wrote: post #2

It's a shame. Groq was really great. Nvidia is stifling innovation here. I don't understand how market regulators allow this.

Funny how everyone shits on Nvidia's monopoly when we've got Google walking around after winning a monumental antitrust case regarding their Android/Chrome/Google information monopoly. How do the market regulators allow that?

One wrong doesn't make another wrong right.

Re: Nvidia just paid $20B for a company that missed its revenue target by 75%

#98

Post by derangedHorse »

joshcsimmons wrote: post #55
simonebrunozzi wrote: post #31

> To visualize $1.5 billion: if you cashed that check out in $100 bills and stacked them one on top of another, it would reach a five story building. For ordinary plebeians like us, at the average US salary of around $75K, you’d need to work 20,000 years to earn that. No, we don't need to visualize that.

Hahaha why are people so mad at this visualization? I thought it was pretty cool!

The average US salary isn't $75k btw. That figure is usually quoted from the reported median household income in 2022[1]. The median personal income, which is the figure that should* be quoted, was around $45k for 2024[2].

[1] https://fred.stlouisfed.org/series/MEHOINUSA646N [2] https://fred.stlouisfed.org/series/MEPAINUSA646N

Re: Nvidia just paid $20B for a company that missed its revenue target by 75%

#99

Post by wkat4242 »

DicIfTEx wrote: post #21
wyldfire wrote: post #8

> I don't understand how market regulators allow this. The US government is literally for sale. Businesses know that this window is limited and are executing antitrust manuvers left and right while they can.

Under current DoJ antitrust guidelines, there's nothing to stop a future administration from reviewing any anti-competitive actions ignored by the current one as part of an anti-competitive series of actions: https://www.justice.gov/atr/merger-guidelines/applying-merge... So those businesses either know, or expect, that either: a) these guidelines will be changed in a way that makes them hard or impossible to revert…

Well there's also a c) - Whatever they get away with now they will have in pocket, and whatever penance they will have to do with a future administration will take years and years of legal back and forth to actually pan out, by which time it will be watered down so any fine will dwarf the profits made during this period.

Also, if they manage to reach "too big to fail" status by that point, whatever punishment will be nothing more than a slap on the wrist.

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