Link: https://www.tomshardware.com/tech-industry/nvidia-to-take-a-cut-of-ai-cloud-revenue-on-top-of-hardware-sales

Sharon AI and Firmus are the first partners, with a combined total of up to 210,000 GPUs.

I am not an AI/ML sсeptic, but this scheme really does make it look like the current setup is de facto a collusion driven bubble for scamming.

Because it is.

AI/ML septic

😁

Sounds like another form of debt financing dependent on future profits to repay.

hahahaa

The thing is bubbles are extremely difficult to define/contextualize before they pop.

Or they are difficult to you because you have an inherent bias of not seeing this particular one.

What do you mean by not seeing this particular one?

I lean towards agreeing that this is a massive bubble, it's just these things are complicated and I don't support making quick judgements in such situations.

Or were you talking about something completely different? Sorry, I am a little bit confused.

One of the few companies making real money is starting to take IOUs. That is a great sign.

You have 3 more sockets which means you could have plugged in 3 more power strips

the futire is local ai. the bubble is the ramp up of ai services. just like the dotcom bubble.

The future of AI is as a $500M/yr industry of boring business software, mostly run by the chinese.

Remember that the big bubbles that popped in the last quarter century or so were based on the internet and housing, both very real and useful things that became a bubble because investors bet way too much speculating on them, including leveraging the rest of the economy for those bets.

Edit: Forgot my point, but even if AI is valuable for the future (which I'd agree with for AI in general but I'm still skeptical about LLMs getting there), it doesn't mean it can't currently be in a bubble.

Also, the dotcom bubble took out companies that were making real money doing real things right then because they started accepting IOUs instead of money, and did their own leveraging to the point where they couldn't afford to not get their IOUs paid back, which they weren't when the companies they got the IOUs from went under.

Nvidia seems to have about 50 billion in debt and 10 billion in cash. I didn't look at the breakdowns of when that debt is due, but it's possible the AI bubble might put them into bankruptcy, especially if their credit rating goes down and they have trouble refinancing.