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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

#111

Post by tcp_handshaker »

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…

Three more voices who agree with Zitron:

"Aswath Damodaran: Big Tech Has No Idea How AI Pays Off" - https://news.ycombinator.com/item?id=49229981

"Why Wall Street is Ignoring Big Tech's Debt" - https://youtu.be/NufJ7g63KSY

"Just how big is the hidden leverage of AI hyperscalers?" - https://archive.is/iLeYs

Lots a broken clocks would you say?

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

#112

Post by cmiles8 »

JacobAsmuth wrote: post #97
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.

Wait until you hear about how airlines work, you'll start babbling about the rewards-points bubble

That’s broadly known and at least they clearly account for it in their numbers, without all the “special financing vehicle” off balance sheet stuff that’s become common in the AI bubble era.

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

#113

Post by Gud »

tcp_handshaker wrote: post #111
Gud wrote: post #107

Earlier quoted context omitted.

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

Three more voices who agree with Zitron: "Aswath Damodaran: Big Tech Has No Idea How AI Pays Off" - https://news.ycombinator.com/item?id=49229981 "Why Wall Street is Ignoring Big Tech's Debt" - https://youtu.be/NufJ7g63KSY "Just how big is the hidden leverage of AI hyperscalers?" - https://archive.is/iLeYs Lots a broken clocks would you say?

I mean, you can get quotes from four people convinced the earth is flat and that the earth is 6000 years old.

Ed Zitron is bearish on everything to do with AI.

I also don't believe the ROI is great investing in OpenAI and other similar corporations. But unlike Ed, I see the value in the technology. It's just the valuations that are wrong.

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

#114

Post by root-parent »

Gud wrote: post #113
tcp_handshaker wrote: post #111

Earlier quoted context omitted.

Three more voices who agree with Zitron: "Aswath Damodaran: Big Tech Has No Idea How AI Pays Off" - https://news.ycombinator.com/item?id=49229981 "Why Wall Street is Ignoring Big Tech's Debt" - https://youtu.be/NufJ7g63KSY "Just how big is the hidden leverage of AI hyperscalers?" - https://archive.is/iLeYs Lots a broken clocks would you say?

I mean, you can get quotes from four people convinced the earth is flat and that the earth is 6000 years old. Ed Zitron is bearish on everything to do with AI. I also don't believe the ROI is great investing in OpenAI and other similar corporations. But unlike Ed, I see the value in the technology. It's just the valuations that are wrong.

>> It's just the valuations that are wrong.

Now dont you go around quoting Ed Zitron :-) not fair...

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

#115

Post by dijksterhuis »

GuestFAUniverse wrote: post #105
gonzo41 wrote: post #48

Earlier quoted context omitted.

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.

as the ml phd student who volunteered to be the admin for the gpu servers, that list is pretty accurate.

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

#116

Post by fg137 »

Gud wrote: post #113
tcp_handshaker wrote: post #111

Earlier quoted context omitted.

Three more voices who agree with Zitron: "Aswath Damodaran: Big Tech Has No Idea How AI Pays Off" - https://news.ycombinator.com/item?id=49229981 "Why Wall Street is Ignoring Big Tech's Debt" - https://youtu.be/NufJ7g63KSY "Just how big is the hidden leverage of AI hyperscalers?" - https://archive.is/iLeYs Lots a broken clocks would you say?

I mean, you can get quotes from four people convinced the earth is flat and that the earth is 6000 years old. Ed Zitron is bearish on everything to do with AI. I also don't believe the ROI is great investing in OpenAI and other similar corporations. But unlike Ed, I see the value in the technology. It's just the valuations that are wrong.

You should read what Ed Zitron is actually saying instead of just making things up.

"is bearish on everything to do with AI", "(not) see the value in the technology"

You totally got it wrong.

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

#117

Post by fg137 »

JacobAsmuth wrote: post #97
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.

Wait until you hear about how airlines work, you'll start babbling about the rewards-points bubble

Well, they fully control miles and constantly devalue them. On the other hand, Nvidia isn't Federal Reserve yet...

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

#118

Post by Jlagreen »

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…

The analogy with IBM mainframe completely ignores Murphy's law which came up and lead to the small and fast chips we have today.

But Murphy's law is dead. No future chip will leapfrog easily current chips because we have reached hard phyical limits in chip density and downsizing. Huang's law by Jensen Huang focuses on something else and that is token performance per Watt at scale.

Blackwell needs double TDP than Hopper and Rubin again needs almost double TDP on a rack but in the end Rubin will be like 100x token performance per watt on a scaled data center. This means you have more energy need but you get multiples of token performance because you start scaling in the data center.

The local chip will never be able to keep up with the data center scaling economics. This is why everyone is so crazy about building data centers because they can see the economocs behind it.

What people don't seem to understand if tokens become more available and cheaper then not only more people can use them but a single person can use more as well. Why should you be limited to 1 AI agent? Why can't have you have multiple agents running on multiple devices daily for you?

This is why demand will grow exponentially with the growth of token economics. We have seen it for the last few years and much more is yet to come.

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

#119

Post by jacquesm »

riknos314 wrote: post #74
jacquesm wrote: post #31

Earlier quoted context omitted.

NV might end up owning them.

Buying the team and then actually making the models open is an interesting avenue for driving hardware demand (basically making openai models the new nemotron). Unlikely but quite interesting.

OpenAI might actually end up being open after all... bit of a roundabout way though.

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

#120

Post by fg137 »

ReptileMan wrote: post #104
Ekaros wrote: post #87

Earlier quoted context omitted.

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.

I'm afraid I don't see "making educate guess" in AI boosters, including a bunch that are active here.
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