Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Nvidia dramatically reduces amount of OpenAI infra financing it may guarantee

reuters.com

Post reply on HN
Print view View original

1–10 of 161 posts

Re: Nvidia dramatically reduces amount of OpenAI infra financing it may guarantee

#4

Post by u1hcw9nx »

I would like to see the numbers.

If Nvidia sells hardware for $100B with 75% cross margin, and provides $50 billion in backstop for that same hardware, it would be still be nicely profitable deal ($25B) if the backstop capacity would be a total write-off recovering $0. Reselling that capacity in some large discount below already low backstop price would increase the profits.

It's all those pension funds, sovereign wealth funds and Softbank getting into that $500 billion deal that will be hurt.

Re: Nvidia dramatically reduces amount of OpenAI infra financing it may guarantee

#6

Post by NewJazz »

u1hcw9nx wrote: post #4

I would like to see the numbers. If Nvidia sells hardware for $100B with 75% cross margin, and provides $50 billion in backstop for that same hardware, it would be still be nicely profitable deal ($25B) if the backstop capacity would be a total write-off recovering $0. Reselling that capacity in some large discount below already low backstop price would increase the profits. It's all those pension funds, sovereign we…

Businesses aim to make the most profit possible with their resources. If they can make a 25% margin that is good, but if they can turn around sell thr same thing for a 50% margin, that is much better.

Basically what i am saying is maybe there is a better buyer than openai.

Post reply on HN