Tech companies are firing everyone to "fund AI", spending money on each other

Post by iberator » Sat, Nov 01, 2025, 5:11 PM UTC

Atreiden wrote: post #31

testdelacc1 wrote: post #25

Earlier quoted context omitted.

At least investing in companies that will buy Nvidia makes sense somewhat, even if it feels dodgy. What possible sense does it make for Nvidia to invest in a maker of telecom equipment (Nokia) with no public plan, and the value of the investment jumps 30% as soon as it’s announced? It’s not like call routing needs to be “AI enabled” or they’re putting Nvidia GPUs in their custom silicon. Feels like Nvidia has too muc…

Nokia had some of the best mobile hardware (and software!) in the game until they were bought by Microsoft and promptly killed. I've been patiently waiting for their resurgence. Building embedded/mobile devices is their forte, which is also coincidentally the hardware space where AI is most poised to shine. Nvidia made a move in the same direction when they tried to acquire ARM. That got antitrusted (fairly so) but i…

Post by awintr » Sat, Nov 01, 2025, 5:15 PM UTC

layer8 wrote: post #69

It’s quite possible that they’d want to do the layoffs regardless, and the AI narrative just gives them a convenient excuse, with the added bonus that it also happens to promote AI.

Post by shermantanktop » Sat, Nov 01, 2025, 5:23 PM UTC

alephnerd wrote: post #33

shermantanktop wrote: post #24

Earlier quoted context omitted.

Agree with a lot of this. But on the last point, that’s the “blame middle management” theory. And I have seen outrageous, florid displays of exactly that behavior in those ranks. But the CEOs have been there all along, doing the math on ZIRP and getting caught up in FOMO. They could have tightened their belts at any time, or demanded better justifications for investments. Why didn’t they?

> But the CEOs have been there all along, doing the math on ZIRP and getting caught up in FOMO. They could have tightened their belts at any time, or demanded better justifications for investments. Why didn’t they? Because the job of a CEO is not to micromanage. The whole point of hiring middle management is to keep CEOs out of micromanaging decisions. The job of C-suite is to 1. Be the arbitrator between different o…

Post by darth_avocado » Sat, Nov 01, 2025, 5:32 PM UTC

scotty79 wrote: post #46

cjonas wrote: post #20

Earlier quoted context omitted.

Then Nvidia is turning around and investing back in the AI companies so they can in turn buy Nvidia chips...

Nvidia is basically allowing some of its clients to pay with partial ownership of their companies instead of with cash for the chips they want, because there's simply not enough cash in them for the lofty goals lots of people think are achievable.

Post by skybrian » Sat, Nov 01, 2025, 5:38 PM UTC