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Nvidia dramatically reduces amount of OpenAI infra financing it may guarantee

reuters.com

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

#101

Post by JacobAsmuth »

protocolture wrote: post #23
martinald wrote: post #14

Earlier quoted context omitted.

Nothing would really change IMO? 99% of users don't have anything like a RTX5070 (mobile especially). Even if it did, it still doesn't make much economic sense running a model locally vs on a datacentre. For example, I managed to just about squeeze a Q2 quant of Qwen 3.7 27b on my 9070XT. I get around 60tps decode (slightly faster prefill). _but_ it uses 300W of power to do so. At UK electricity rates of 30c/kWh this…

I dunno a lot of things said about AI economics sound like an IBM executive making reassuring statements about their terminal/mainframe business before the personal computer took off. Like even if you run it in a datacenter in this scenario, you could do it on a cheap GPU instance in Azure, you still wouldnt need OpenAI or Anthropic specific clouds. >uses 300W of power to do so. There are plenty of people with phat e…

You're suggesting that if a very good and cheap AI model came out tomorrow everyone would rush out to rent Azure instances to run batch size 1 inference on their model?

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

#102

Post by tacet »

karlgkk wrote: post #51
jgalt212 wrote: post #25

Earlier quoted context omitted.

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...

no quack

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

#103

Post by tcp_handshaker »

robotresearcher wrote: post #67

'May guarantee' is an oxymoron I've never come across before. Mangled headline. The article title is "Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports".

Except once again Ed Zitron is right, and as he mentioned, there is no guarantee or contract signed, there is only a memorandum of understanding...

NVIDIA keeps showing the smarts acting like a bank, while having none of the liabilities and deferring them to Goldman...

"...Memorandums of understanding signed with six of the world’s premier financial institutions to create these partnerships aim to establish the first compute financing platforms of their kind at global scale to enable the AI infrastructure buildout across NVIDIA’s ecosystem..."

https://nvidianews.nvidia.com/news/nvidia-partners-with-apol...

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

#104

Post by ReptileMan »

Ekaros wrote: post #87
chocolol wrote: post #54

Ed Zitron might be right

His numbers might be off or he might not have all of them. But still I can not escape that he is most likely correct. All of this equipment needs to be paid. With interest and profit. With the usual overheads that the companies run. And if more is being bought each year. It doesn't seem like one and done deal. And then just asking where will all that money come from is very good one. And one we should be very honest…

If you have someone walking on tightrope over the grand canyon in stormy weather, you don't need the exact wind speed to make educated guess that the winner will be gravity.

I think he is too emotional and overly sensational though.

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

#105

Post by GuestFAUniverse »

gonzo41 wrote: post #48
asveikau wrote: post #45

Earlier quoted context omitted.

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.

Nope. The scientific community is eagerly waiting for prices to drop.

Single 5090, single H100, a few 4090s, a few Blackwell PRO 6000... that's all there often is as dedicated devices for a faculty (apart from the oversubscribed bigger clusters with big stuff).

Apart from the chairs doing vision, most of them use them headless. So, landfill will be highly unlikely, if things get sold fast enough.

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

#106

Post by no-name-here »

HDBaseT wrote: post #28
cmiles8 wrote: post #26

Nvidia is turning into a savings and loan company that happens to design computer chips on the side. What could possibly go wrong.

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.

> If shit hits the fan, the companies collapse, then Nvidia gets their money from the investors anyways.

Is Nvidia guaranteeing the financing because OpenAI doesn’t have investor cash to pay the costs outright?

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

#107

Post by Gud »

tcp_handshaker wrote: post #103
robotresearcher wrote: post #67

'May guarantee' is an oxymoron I've never come across before. Mangled headline. The article title is "Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports".

Except once again Ed Zitron is right, and as he mentioned, there is no guarantee or contract signed, there is only a memorandum of understanding ... NVIDIA keeps showing the smarts acting like a bank, while having none of the liabilities and deferring them to Goldman... "...Memorandums of understanding signed with six of the world’s premier financial institutions to create these partnerships aim to establish the firs…

Ed Zitron is clueless. He’s the Jim Cramer of AI.

A broken clock…

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

#108

Post by sensanaty »

karlgkk wrote: post #51
jgalt212 wrote: post #25

Earlier quoted context omitted.

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 cannot possibly be a real thing, it has to be an elaborate 4chan shitpost

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

#109

Post by watwut »

fooker wrote: post #39
Taikhoom10 wrote: post #37

Earlier quoted context omitted.

Uh no, NVDIA helping startups get financing so they can buy NVDIA chips is inherently damaging because eventually the debtors will not help with the financing and startups will not be able to buy chips.

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…

It is strained analogy, heavily. I am not paid by Toyota. I am vetted for my ability to pay the loan. Me buying a car with borrowed money is not circular financing.

If most of Toyota earnings went from money they borrowed to me, it would be an issue. But, in fact, that is not how Toyota business works.

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

#110

Post by 9cb14c1ec0 »

Gud wrote: post #107
tcp_handshaker wrote: post #103

Earlier quoted context omitted.

Except once again Ed Zitron is right, and as he mentioned, there is no guarantee or contract signed, there is only a memorandum of understanding ... NVIDIA keeps showing the smarts acting like a bank, while having none of the liabilities and deferring them to Goldman... "...Memorandums of understanding signed with six of the world’s premier financial institutions to create these partnerships aim to establish the firs…

Ed Zitron is clueless. He’s the Jim Cramer of AI. A broken clock…

He hasn't been right on everything, but he definitely has been right repeatedly when it comes to the MOUs. Clueless is a bit strong.
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