Isnt that... what circular financing often refers to?
If I invest in you and you use my stack and pay me for it. It's circular. I don't think it should be illegal to do this type of vendor financing/investment or what not as it has its legitimate uses.
Circular financing is when the revenue you get back is a fraction of what you put in, essentially. If you put in 1$ to get 10$ back in (future) revenue, that's not circular financing.
Yes but how many such isolated cases are there? There is a real possibility that a lot of the AI bubble is fuelled not by dealing with itself but by pulverizing influence all over the market.
no, circular financing refers to it bouncing through several loops of that. the implication is that it’s system predators working the math, not the business. you should hear it in the same tones that bankers use the word leverage
I don't think 1 loop is enough. You could remove the loop by just giving the GPUs directly as part of the investment. But investing in pure cash gives more flexibility especially in time where there may not even been spare GPUs able to be given away.
Bear with me.... Leverage and Insurance. Leverage against whom? US govt.
Maybe VCs and Private Equity funds represents what is essentially oligarchs. They are oligarchs as institutions. Everyone knows this already. US has certain liking to captialism as long as it is represented trough institutions and not individuals. Controversial I know, but standard oil, billy boy gates and monopoly trials, musk and spacex being public companies. It is just America.
So, NVIDIA figured out an interesting play. NVIDIA is playing a risky game where US govt can anytime say "fuck you, I hate you now". But if they embroil themselves in enough foundational businesses across america saying fuck you to them is difficult. Startups are " think of the children" corporate America.
They have become part of the oligarch class, they have invested where politicians childrens are working or lets be clear founded startups. This is not curricular economy, it is nvidia buying insurance. If they were read blooded America it would have been leverage, but this is insurance. Saying fuck you to them is progressively getting harder.
Any way my legs are frozen that is enough conspiracy theories I can write from the stall.
It's almost certainly about making sure that these startups use Nvidia stack.
I paid real money for the 4090. Real $2000
If I invest in you and you use my stack and pay me for it. It's circular. I don't think it should be illegal to do this type of vendor financing/investment or what not as it has its legitimate uses.
But it is circular.
It's just to make sure the next OpenAI uses Nvidia stack.
This is not the case. This is just having influence.
I don't think this locks the startup into Nvidia stack. I don't think this is advertising either. It's just influence.
Circular is not the word I use to describe this business tactic.
Maybe VCs and Private Equity funds represents what is essentially oligarchs. They are oligarchs as institutions. Everyone knows this already. US has certain liking to captialism as long as it is represented trough institutions and not individuals. Controversial I know, but standard oil, billy boy gates and monopoly trials, musk and spacex being public companies. It is just America.
So, NVIDIA figured out an interesting play. NVIDIA is playing a risky game where US govt can anytime say "fuck you, I hate you now". But if they embroil themselves in enough foundational businesses across america saying fuck you to them is difficult. Startups are " think of the children" corporate America.
They have become part of the oligarch class, they have invested where politicians childrens are working or lets be clear founded startups. This is not curricular economy, it is nvidia buying insurance. If they were read blooded America it would have been leverage, but this is insurance. Saying fuck you to them is progressively getting harder.
Any way my legs are frozen that is enough conspiracy theories I can write from the stall.