Since much of their payment is in equity and cross-investment deals, it isn’t quite that simple. If there’s a market crash, the value of Nvidia’s “payment” will plummet after-the-fact. So it’s speculative in a large part.
I don’t say this just to be pedantic, I think it’s important to understand how invested (literally and figuratively) Nvidia is in maintaining the AI bubble.
Sorry I might have worded that weirdly, but I agree.
I meant the AI market is speculative, and at the cost of an existing market of customers goodwill (who are only quite profitable), nvidia bought some speculative tech bros goodwill (who are currently incredibly profitable).
Its certainly one of the business decisions of all time.
Thats the point, they killed off a large part of their existing market to chase a speculative one.
So they’re just betting that the bubble lasts more than the next quarter.
It’s not speculative!
They have the orders in hand. If they provide the card, they get the money.
The people doing the speculating are the ones building the data centres, hoping the demand will be there long enough to pay off the costs.
Nvidia is not paid 100% in cash though. If the bubble pops, they might not get paid even if they deliver the card.
Since much of their payment is in equity and cross-investment deals, it isn’t quite that simple. If there’s a market crash, the value of Nvidia’s “payment” will plummet after-the-fact. So it’s speculative in a large part.
I don’t say this just to be pedantic, I think it’s important to understand how invested (literally and figuratively) Nvidia is in maintaining the AI bubble.
Also they gave them the money to buy the cards! It’s a full blown guarantee right lol
Sorry I might have worded that weirdly, but I agree.
I meant the AI market is speculative, and at the cost of an existing market of customers goodwill (who are only quite profitable), nvidia bought some speculative tech bros goodwill (who are currently incredibly profitable).
Its certainly one of the business decisions of all time.
Of all time!
LOOK AT THE LINE!!