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OpenAI, Nvidia fuel $1T AI market with web of circular deals

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Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#181

Post by skatingaway »

throw-10-8 wrote: post #142
altacc wrote: post #135

Earlier quoted context omitted.

The other day I was helping somebody choose some funds to invest in. The majority of "global" or "index" funds we looked into either directly or indirectly had the largest share of holdings in Nvidia, Microsoft, Meta, Alphabet, AMD. Often these were about 50-70% of their portfolio. The returns for the past year look great but the crash is going to be devastating and widespread because so many investments link back to…

I completely withdrew from the US market last Nov 5th. It's plainly obvious where all of this is going.

There are other companies than the magnificent 7. Other boring companies with boring dividends and solid earnings that have nothing to do with tech. Ulta. Pepsi. Chevron. But you sound pretty smart so I’m sure you had a good reason to invest in non us markets.

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#182

Post by HelloNurse »

Sam6late wrote: post #93
qaq wrote: post #78

Earlier quoted context omitted.

Same as capacity swaps in telecom of that era

This is How Larry Elisson beat Musk for a short while although Oracle was struggling.' The deals among Oracle, Nvidia, and OpenAI have raised concerns about their circular and potentially risky nature. Oracle is reportedly spending tens of billions on Nvidia's advanced chips, Nvidia plans to invest up to $100 billion in OpenAI, and OpenAI uses Oracle's cloud infrastructure through Microsoft's Azure, creating a closed…

If this means that the fall of OpenAI will cause Oracle and Nvidia to crash and downsize, bubbles aren't completely bad.

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#183

Post by skatingaway »

stephc_int13 wrote: post #54

Every day a new deal involving OpenAI. Every day one or more article wondering if/when the AI boom will transform into a bursting bubble. Maybe people are crying wolf or misreading the situation. My gut feeling is that yes, this is indeed a bubble and behind closed doors the CEOs are in panic mode, weirdly repeating past and well known mistakes

It just we’ve seen the same thing for over four decades. I was getting stock certificates mailed to me from IBM in the 1980s when the savings and loan scandal rocked the market in 87. Then Enron. Then the internet bubble. Then the subprime meltdown. It just happens every decade or so when “too good to be true” runups happen.

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#184

Post by re-thc »

HelloNurse wrote: post #182
Sam6late wrote: post #93

Earlier quoted context omitted.

This is How Larry Elisson beat Musk for a short while although Oracle was struggling.' The deals among Oracle, Nvidia, and OpenAI have raised concerns about their circular and potentially risky nature. Oracle is reportedly spending tens of billions on Nvidia's advanced chips, Nvidia plans to invest up to $100 billion in OpenAI, and OpenAI uses Oracle's cloud infrastructure through Microsoft's Azure, creating a closed…

If this means that the fall of OpenAI will cause Oracle and Nvidia to crash and downsize, bubbles aren't completely bad.

> If this means that the fall of OpenAI will cause Oracle and Nvidia to crash and downsize

Only if those are the only actual real customers. It's not. The pie is a lot bigger. And with the current hype some other AI company will just take over and the bubble will continue.

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#187

Post by HelloNurse »

thiago_fm wrote: post #154
hn_throwaway_99 wrote: post #101

Earlier quoted context omitted.

Why is it so popular to "akshually, Ponzi schemes are different!" these days? Words have meaning in context, and calling something a "Ponzi scheme" these days means any pyramid-like system that only works as long as new investors come to the table, because that new investor money is the sole source of gains for earlier investors. But once you run out of new investors, which is inevitable, the whole thing collapses. W…

Agree, people became extremely pedantic with words and it's incorrect to assume they only mean what is described in a dictionary, as if we are in a court. Language is fluid, and many of words got their very known & popular meanings later, when people used for things that it didn't exactly mean what it was initially intended to, and it got popular. People are ever less empathetic and sociable, this being the reason fo…

People become pedantic when it's the only way to defend themselves and their friends or to argue against someone.

In this case dotcom investing was so stupid that it should have been recognized as stupid at the time, without hindsight. For someone who lost money, gave bad advice etc. insisting that they didn't fall for a Ponzi scheme means representing themselves as less terrible investors, regardless of facts.

Re: OpenAI, Nvidia fuel $1T AI market with web of circular deals

#188

Post by munksbeer »

re-thc wrote: post #156
returnInfinity wrote: post #107

This is fueled by the parabolic token usage. If token usage continues to grow parabolic, then these are the most genius deals made. If token usage declines because of high prices, look at what happened to SBF.

> look at what happened to SBF SBF lacked funds to ride it out. If they survived for a bit longer, Bitcoin would have surged and they'd keep going. AMD, Nvidia etc all have income and funds to survive. This is just about finances unless you're implying there's some crime here too.

> SBF lacked funds to ride it out. If they survived for a bit longer, Bitcoin would have surged and they'd keep going.

Yes and then maybe he'd never have been arrested and jailed for all his crimes.

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