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I love when Nvidia invests in AI companies. They know that money is coming right back to them. It's basically just a loan to the company in exchange for poten

I love when Nvidia invests in AI companies. They know that money is coming right back to them. It's basically just a loan to the company in exchange for potential upside of them doing something with Nvidia's chips. :)

mmaunder 3y ago
Interesting situation with public markets funding Nvidia which is investing in its own customers, driving further strong financial results driving further public investment. A high risk high reward play. Nvidia is eating AI.
- jtsiskin 3y ago
  Humorously(?), you’re also exactly describing a pyramid scheme
  - mmaunder 3y ago
    Pyramid scheme has one source of cash and that’s new investors. This has revenue from NVidia and startups adding to the system. It’s just capitalism.
riku_iki 3y ago
> They know that money is coming right back to them. it is totally can be condition of investment round: have specific vendor as compute provider.
- jedberg 3y ago
  It could be, but I'm guessing they don't even have to.
1letterunixname 3y ago
Nvidia is likely to have a $36-40 B revenue year this year and next because of massive customer investments. Meta is spending $8 B on their gear and about the same next year. OpenAI+Microsoft are likely following suit with several billion in server buildout. I'm curious if Google or Apple will be adding large swaths of AI boxes to their fleet too.
- hackernewds 3y ago
  Ridiculous. This implies infinite supply. Neither the supply chain, nor nature is designed to churn out GPUs like this. That $ will take time to be captured.
stevofolife 3y ago
Exactly and it would be extremely stupid for them not to take advantage of their current market position. It's a now or never situation IMO.
MasterScrat 3y ago
> They know that money is coming right back to them. Oh I assumed they were directly delivering them truckful of A100s? do they actually still bother with cash? ;-)
extraduder_ire 3y ago
"Can we have the investment partly in stock?" "I guess, but our shareholders probably won't be too happy." "No no no, not shares. I mean stock like from a warehouse, we need them cores man!"

mmaunder 3y ago

Interesting situation with public markets funding Nvidia which is investing in its own customers, driving further strong financial results driving further public investment. A high risk high reward play. Nvidia is eating AI.

jtsiskin 3y ago
Humorously(?), you’re also exactly describing a pyramid scheme
- mmaunder 3y ago
  Pyramid scheme has one source of cash and that’s new investors. This has revenue from NVidia and startups adding to the system. It’s just capitalism.

riku_iki 3y ago

> They know that money is coming right back to them. it is totally can be condition of investment round: have specific vendor as compute provider.

jedberg 3y ago
It could be, but I'm guessing they don't even have to.

1letterunixname 3y ago

Nvidia is likely to have a $36-40 B revenue year this year and next because of massive customer investments. Meta is spending $8 B on their gear and about the same next year. OpenAI+Microsoft are likely following suit with several billion in server buildout. I'm curious if Google or Apple will be adding large swaths of AI boxes to their fleet too.

hackernewds 3y ago
Ridiculous. This implies infinite supply. Neither the supply chain, nor nature is designed to churn out GPUs like this. That $ will take time to be captured.

stevofolife 3y ago

Exactly and it would be extremely stupid for them not to take advantage of their current market position. It's a now or never situation IMO.

MasterScrat 3y ago

> They know that money is coming right back to them. Oh I assumed they were directly delivering them truckful of A100s? do they actually still bother with cash? ;-)

extraduder_ire 3y ago

"Can we have the investment partly in stock?" "I guess, but our shareholders probably won't be too happy." "No no no, not shares. I mean stock like from a warehouse, we need them cores man!"