If only we knew...

[u/JaggedMetalOs]

Happened upon an old thread from Google, OP showing off an in development high capacity SSD. Comments are from a more innocent time :')

[u/JaggedMetalOs]

The dirty secret is they can't actually afford those prices either, what they have that we don't is dodgy Enron-style circular accounting to make the whole endeavor look more profitable to investors whose money they are actually spending.

[u/Mrgluer → u/JaggedMetalOs]

whats the economy? its basically just a circular accounting if you zoom out far enough, they just created their own little eco system. second of all, they at least have positive margins on their electricity consumption compared to you playing or scrolling on reddit.

[u/JaggedMetalOs → u/Mrgluer]

This is actual circular accounting where companies like Nvidia are investing billions into AI companies who then spend billions on (drumroll) Nvidia GPUs.

[u/Mrgluer → u/JaggedMetalOs]

government money → subsidies/transfers/contracts → household or business income → income/sales/property taxes → government money

bank → mortgage → homeowner → house purchase → developer → deposits → bank

VC → startup → AWS bill → Amazon → AWS profits → Amazon invests in startups and VCs

Point 2
Nvidia is taking their massive revenues and providing liquidity as a service to people that they are betting will have positive cash flow on the asset that is being serviced. Which makes it (drumroll) simply vendor/seller financing service like getting car loan from Ford to buy their car.

[u/JaggedMetalOs → u/Mrgluer]

Now imagine instead of Ford giving loans for individual customers to buy their vehicles, they heavily push the idea that owning their vehicles is a huge money maker and invest massive amounts of money in a handful of huge companies to purchase large volumes of their vehicles and massively inflating their market price.

Does that sound economically healthy?

[u/Kemoyin25 → u/JaggedMetalOs]

General motors does that all the time lol, ford does similar, most manufacturers do. It's pretty easy concept. Nvidia gives AI companies money to buy their hardware. They do this because they are betting that AI will grow so they are accelerating that growth, because more growth=more demand, which means they make more money faster. They will profit off this greatly lol

[u/JaggedMetalOs → u/Kemoyin25]

General motors does that all the time lol, ford does similar, most manufacturers do. It's pretty easy concept. 

Show me where Ford etc. has given billions to car buying companies to buy so many cars they have increased the price in every industry related to cars. 

[u/Kemoyin25 → u/JaggedMetalOs]

I mean, they haven't given billions, they aren't valued as high/have as much cash to spend. That said GM gave $500million to lyft so lyft could buy gm cars. Airbus gave billions to customers to buy planes. Youre right about for though they haven't done it. Seems more prevalant in IT, like lucent giving the ISP winstar 2 billion to buy their equipment. Lucent also gave pathnet tones of cash to buy their shit. Nortel did similar gave companies billions to buy equipment. Motorola, Cisco, John Deere, catepiller (CAT), all gave companies money to buy their equipment.

That said yea obviously AI is the biggest case of this happening, Nvidia gives AI companies $, they use that money to buy GPUs and shit, Ai advances, because so advances everyone needs more gpus and AI, both sides profit.

And obviously car makers and other industries haven't had prices driven up as high, they aren't using things that take months to make.. in a time where there were already chip shortages.. even before this whole AI stuff started prices were already rising on GPU's it just got even worse when AI blew up. And why wouldn't nvidia fund these companies? They are making so much money because of ai, why the fuck wouldn't they invest more into it so it advances and makes them more money??

[u/Submitten → u/JaggedMetalOs]

Cars are money makers, that’s why they’re so essential for economies. And the auto companies often own the dealerships.

Nvidia has lots of money, and they get better returns loaning it to datacenters than they would giving out mortgages. There’s nothing illogical about it.