51–60 of 161 posts
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SoftBank has always managed to squeeze by after every mistake selling some early huge wins Alibaba, Nvidia, arm. Wonder if they still have any of those left in the back pocket.
Indeed, Masa has more lives than a cat.
Goose value 71 here: https://group.softbank/media/Project/sbg/sbg/pdf/ir/investor...
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Again, this is how all of economics works. A Toyota dealership arranges a loan for you. Through a bank for a used vehicle, sometimes through Toyota itself for new cars. A house builder will routinely take on part of the loan providing burden to get some of the interest. Even someone selling you their thirty year old house will often provide seller financing. You may have ideological opinions against this, which is fi…
No, I get this; it is not a problem. It becomes one when they cannot pay back this financing, in the event that they cannot build a sustainable business, which they cannot, because the capital cycle leads to overinvestment, meaning the financiers cannot meet their returns. https://s-1.vercel.app/posts/the-capital-cycle-theory/
Neither of those look likely yet.
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I'm hoping when the shit hits the fan, you can get a sick GPU for cheap.
it'll be a rack based GPU without video ports. The only thing getting sick GPU's will be landfill when they all burn out and the data center rationalization happens.
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The loans will just take longer to repay. There is a market for Anthropic & OpenAI, it just likely doesn't have the 200B profit each year required for the maths to make sense. If shit hits the fan, the companies collapse, then Nvidia gets their money from the investors anyways.
I'm hoping when the shit hits the fan, you can get a sick GPU for cheap.
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Indeed, Masa has more lives than a cat.
Have you seen his investor presentations? He is no longer building his war chest and is now executing on SoftBank’s 400 year plan Goose value 71 here: https://group.softbank/media/Project/sbg/sbg/pdf/ir/investor...
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All economics is circular financing, that's how it works. You pay Apple for a MacBook, Apple uses it to develop a better MacBook. What goes wrong is leverage. We haven't seen much hint of the 10x leverage kind of deals that brought down the house in 2008.
It's worth noting that this is deal that has never been signed previously. There's a release from DoE about it: https://www.energy.gov/articles/fact-sheet-department-energy... That's a horrible amount of gas energy generation. https://www.datacenterdynamics.com/en/news/openai-in-talks-t... has more details. The whole campus build could be as much as $500B. Would that be the most expensive single thing ever built? The…
If it doesn't get built, it will still set a bunch of records; some of them probably quite infamous.
It is hard to describe the ridiculous scale they are trying to do there. For comparison, typical electrical demand is 17 GW and peaking to 25, with total generation capacity being 30 GW. That includes us-east-2, which is not a small data centre (consumes probably right around 2 GW, so represents about 10% of the state's power demand).
So they're talking about a project that would increase total power consumption in the state over 50%... in addition to building multiple nuclear power plants to fund it. Predicting 2,500 permanent jobs in a county of 27,000 total people, so that's a lot of people moving in.
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Indeed, Masa has more lives than a cat.
Have you seen his investor presentations? He is no longer building his war chest and is now executing on SoftBank’s 400 year plan Goose value 71 here: https://group.softbank/media/Project/sbg/sbg/pdf/ir/investor...
This is probably a lot more related to the fact they want to make GPUs an asset class. Nvidia is banking on the fact there will be an entire market that will guarantee whatever anyone needs.