So Nvidia is basically farming everyone else?
It's the parable about how in a gold rush you want to be the guy selling shovels.
Is AI Profitable Yet?
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Re: Is AI Profitable Yet?
#12Now use common accounting standard and amortize the cost. Oh it doesn't fit the narrative. Never mind then.
I assume you are saying it would look less ridiculous? By how much?
Re: Is AI Profitable Yet?
#13To be honest whatever author wanted to say there three categories of AI related companies: hardware manufacturers, cloud providers and purely AI companies.
Only the later have something to lose if AI bubble gone by tomorrow. Everyone else will just stay with grown capacity and reuse infrastructure for whatever.
Not listing other hardware companies is just dishinest. AI is not a crypto mining where resources are just burned.
Re: Is AI Profitable Yet?
#14Now use common accounting standard and amortize the cost. Oh it doesn't fit the narrative. Never mind then.
In what ways do common accounting standards and amortizing the costs (this is tricky for ai and the current batch of gpus I hear!) change the data presented here? Does it detract from the point? Completely contradict it?
You can turn your drive-by dismissal into something really informative if you want to.
Re: Is AI Profitable Yet?
#15So Nvidia is basically farming everyone else?
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Re: Is AI Profitable Yet?
#16For a rapidly growing new line of business, this isn't bad at all.
Yeah, my first impression when I saw this was: if this is accurate, the situation is not nearly as bad as I thought.
I do wonder why Nvida is included, though. If you include the company that all of the frontier models are pouring money into, of course the net (expenditure - profits) of the collective is going to be closer to zero :-)
Re: Is AI Profitable Yet?
#17Now use common accounting standard and amortize the cost. Oh it doesn't fit the narrative. Never mind then.
The depreciation is also insane and thus to sustain operations and improve, the spend will keep going.
Re: Is AI Profitable Yet?
#18So Nvidia is basically farming everyone else?
Them and Broadcom
Re: Is AI Profitable Yet?
#19So Nvidia is basically farming everyone else?
It's historically called: selling buckets and shovels during a gold rush.
The only way to get consistently rich in any bubble economy.
Re: Is AI Profitable Yet?
#20Now use common accounting standard and amortize the cost. Oh it doesn't fit the narrative. Never mind then.
If OpenAI and Anthropic adopted GAAP nobody would be able to invest in them it would be so bad