• boonhet@lemmy.zip
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    17 hours ago

    Who’s going bankrupt? Nvidia did over 200 billion in stock buybacks and still has more money than they know what to do with. They’re preparing for the burst already, they just want everyone else to keep buying their servers in the meantime.

    • Magiilaro@feddit.org
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      17 hours ago

      Yeah, but when the bubble pops then all that money that was created by circlurar financing will be vanish from one second to the other. They don’t really have that money as liquid currency but it is part of a huge net of interwoven transactions between all the AI companies. And yes, Nvidia will most likely not get bankrupt but a lot of other compaines will do, and the ones who will survive will see extremly huge losses. The effect on the global finance market will make the Wall Street crash of 1929, the 2008 financial crisis, and all other crisis together look like a fun day in kindergarden.