New chips make older chips not worth it to run sooner than expected. That's the crux of Verge's argument.
This is bad for Nvidia, how?
Who makes the newer chips?
zerosizedweasle•1h ago
The article is actually about all the debt. GPU backed loans which are highly questionable in terms of collateral to back lending.
“Nvidia has plowed plenty of money into the AI space, with more than 70 investments in AI companies just this year, according to PitchBook data. Among the billions it’s splashed out, there’s one important category: neoclouds, as exemplified by CoreWeave, the publicly traded, debt-laden company premised on the bet that we will continue building data centers forever.
CoreWeave and its ilk have turned around and taken out debt to buy Nvidia chips to put in their data centers, putting up the chips themselves as loan collateral — and in the process effectively turning $1 in Nvidia investment into $5 in Nvidia purchases. This is great for Nvidia. I’m not convinced it’s great for anyone else.”
zerosizedweasle•2h ago
Chipwrecked: Can Nvidia avoid the crash?
https://archive.is/0BsJ7
aurareturn•1h ago
This is bad for Nvidia, how?
Who makes the newer chips?
zerosizedweasle•1h ago
“Nvidia has plowed plenty of money into the AI space, with more than 70 investments in AI companies just this year, according to PitchBook data. Among the billions it’s splashed out, there’s one important category: neoclouds, as exemplified by CoreWeave, the publicly traded, debt-laden company premised on the bet that we will continue building data centers forever.
CoreWeave and its ilk have turned around and taken out debt to buy Nvidia chips to put in their data centers, putting up the chips themselves as loan collateral — and in the process effectively turning $1 in Nvidia investment into $5 in Nvidia purchases. This is great for Nvidia. I’m not convinced it’s great for anyone else.”