Hey guys we're trillionaires now too btw
Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
31–40 of 51 posts
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#32Last time this happened Alan Greenspan called it irrational exuberance on TV, then we all lost our life savings...
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#33I have a theoretical question. At what point does capitalism become the other side of the coin from communism. Like there's communism which is centralized planning and the state owning the means of production. Then I think there's Adam Smiths ideal form of capitalism that I think can loosely be described as independent demand signals allocate resources throughout the economy. What happens when a capital accumulates i…
This observation is exactly the Marxist prediction of how capitalism gradually transforms society from early capitalism, which nearly fit the Econ 101 assumptions of many small producers and consumers and such, into something that operates economically more like communism by being centrally planned, but with the severe drawbacks of a minority ruling class and being run undemocratically on the basis of private profit…
Which is what the European Socialists have been calling "Late Capitalism" since I think the 60's about the period from the 30's onwards.
The problem is it's not easy to have an actual debate on this since to some folks questioning whether capitalism or this form of capitalism is serving societies needs rapidly gets you lumped in with the "communists".
At some point though it becomes impossible to hide that the Emperor does in fact have all the clothes and everyone else is naked by comparison.
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#34So, Nvidia are backstopping $100B for the Ohio project, yet at the same time OpenAI are developing their Jalapeño processor, which will mean it will no longer need Nvidia GPUs for inference. That does not really make any sense to me.
Mcdonald's famously invested in Chipotle as a risk mitigation strategy. If consumers want healthier fast food, sales at Mcdonald's will go down, and sales at Chipotle will go up. Investing in something anti-correlated with your business lowers risk by paying you when your own business is hurt by a surprise.
If you can see the future, by all means invest in the one stock that will go up the most. If you can't see the future, diversifying into assets that have negative correlation (one goes up if the other goes down) lowers volatility at the cost of limiting possible upside.
Nvidia has a massive pile of money. Where should they invest? If they believe in what OpenAI is doing, investing in it makes sense no matter what hardware OpenAI chooses. If OpenAI manages to make something much better than Nvidia hardware, Nvidia's sales will go down as the value of OpenAI goes (way) up. If OpenAI fails to make something as good as Nvidia hardware, they buy Nvidia hardware.
It is odd how internet commentators seem to think that companies make investment decisions as a way to root for a team. They do not. That is not how finance professionals think!
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#35So, Nvidia are backstopping $100B for the Ohio project, yet at the same time OpenAI are developing their Jalapeño processor, which will mean it will no longer need Nvidia GPUs for inference. That does not really make any sense to me.
He is baaaack:
"Nvidia is running on borrowed time" - https://youtu.be/k44OmbYqLzk
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#36I have a theoretical question. At what point does capitalism become the other side of the coin from communism. Like there's communism which is centralized planning and the state owning the means of production. Then I think there's Adam Smiths ideal form of capitalism that I think can loosely be described as independent demand signals allocate resources throughout the economy. What happens when a capital accumulates i…
That doesn’t sound right. Silicon Valley is clearly responding to massive demand for AI services. The reason Nvidia has so much money is that people are paying them for something only they can make. It’s not like they’re issuing stock into a meme stock spike or something. They’re selling hardware that companies are demanding in large quantities because those companies need the hardware to provide services that people…
> Silicon Valley is clearly responding to massive demand for AI services > to provide services that people and companies want so badly
Not at all. In economics, demand has little to do with "wants", it means paying the price to buy the service. In that light, there isn't much demand for AI because the companies providing it are losing huge sums of money to subsidize underpriced and mostly free services.
The AI "demand" is now paid for by circular deals and huge debts incurred for the sake of centrally planned subsides - in confirmation of the comment you're trying to refute.
> They’re selling hardware that companies are demanding in large quantities because those companies need the hardware
Those companies don't need the hardware for funded demand (which isn't there), they need it to scalp the hardware market by hoarding and centralizing compute, while suppressing possible competitors - another centrally planned activity lacking any wider economic benefits.
PS. There's another big mistake in this expression "hardware that companies are demanding in large quantities" - the demands increase the price but they don't increase the quantity, because all relevant fabs are running at full capacity, they literally cannot provide more.
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#37So, Nvidia are backstopping $100B for the Ohio project, yet at the same time OpenAI are developing their Jalapeño processor, which will mean it will no longer need Nvidia GPUs for inference. That does not really make any sense to me.
Mcdonald's famously invested in Chipotle as a risk mitigation strategy. If consumers want healthier fast food, sales at Mcdonald's will go down, and sales at Chipotle will go up. Investing in something anti-correlated with your business lowers risk by paying you when your own business is hurt by a surprise. If you can see the future, by all means invest in the one stock that will go up the most. If you can't see the…
If you have extra cash and cannot spend it on your own business, you can just pay dividends to the shareholders. The shareholders are free to invest in competing businesses (or not, if they want a pure play without hedging). Turning the business into a hedge fund with the retained capital seems to primarily benefit insiders after a certain point.
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#38So, Nvidia are backstopping $100B for the Ohio project, yet at the same time OpenAI are developing their Jalapeño processor, which will mean it will no longer need Nvidia GPUs for inference. That does not really make any sense to me.
Ohio billionaire Les Wexner (yes, that Wexner) had an early investment in CoreWeave.
https://www.forbes.com/sites/iainmartin/2024/08/06/how-victo...
Data centers are being built on his land in New Albany:
https://www.wsj.com/tech/ohio-intel-chipmaking-investment-st...
So either Nvidia is dangling a carrot in front of the Epstein people in the Trump admin (Trump, Lutnick, etc.) or it is in on it. I wonder where Wexner got the CoreWeave tip.
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#39I have a theoretical question. At what point does capitalism become the other side of the coin from communism. Like there's communism which is centralized planning and the state owning the means of production. Then I think there's Adam Smiths ideal form of capitalism that I think can loosely be described as independent demand signals allocate resources throughout the economy. What happens when a capital accumulates i…
> What happens when a capital accumulates in a smaller pool of folks who choose how to allocate those resources.
> Silicon Valley isn't responding to demand, it's essentially centrally planning where to assign resources to create demand.
Silicon Valley is not centrally planned. The people at Microsoft did not go to a committee and ask the people who ran Sun Microsystems if it would be okay to release Windows NT. They mailed the CEO of Sun a coffin (1).
1. https://www.pcgamer.com/software/windows/the-team-behind-win...
Re: Nvidia Insists It Can Keep Printing Money to Fund the AI Boom
#40Archieve link: http://archive.today/98KYg
Can anyone explain how Nvidia is not shaping up to the modern GE? This plus it's recent entry into making a PAC does not bode well