▲ 125 ▼ Is AI Profitable Yet? (isaiprofitable.com) submitted 4 months ago by not_IO@lemmy.blahaj.zone to c/fuck_ai@lemmy.world 14 comments fedilink hide all child comments
[–] brucethemoose@lemmy.world 50 points 4 months ago (8 children) It is if you’re a hardware company. Picks and shovels… permalink fedilink source hideshow 8 child comments replies: [–] otacon239@lemmy.world 45 points 4 months ago (6 children) I love this at the bottom of the page permalink fedilink source parent hideshow 6 child comments replies: [–] Davel23@fedia.io 17 points 4 months ago (3 children) Yeah, but how much of that is the money that nVidia "invested" in other companies so they can buy nVidia hardware? permalink fedilink source parent hideshow 3 child comments replies: [–] Thorry@feddit.org 21 points 4 months ago Even the deals that might seem perfectly fine on the surface. Nvidia sells some hardware and the customer paid for them. However when we zoom in it's not that they actually paid for them, it's that payment is due sometime in the future. And it isn't that the hardware is actually delivered, it's what Nvidia calls buy-and-hold. This is a scheme where Nvidia holds on to the hardware till the customer has a data center ready to put them in. However it is since become clear that those data centers are never being built. And Nvidia has sold more than they have manufactured. And the customer doesn't have the funds to pay them. So on paper it's all fine and everyone is doing well, in reality it's all just a huge bubble. And yes this is super illegal, but in the Trump era it's like the Wild West out there, utter lawlessness. permalink fedilink source parent [–] brucethemoose@lemmy.world 2 points 4 months ago* (1 child) But even if those companies disappear overnight, and LLMs are blanket banned worldwide, aren’t they (pun intended) still in the green? Their stock may drop, and they lose those investments, but at the end of the day they sold hardware and made a shit ton of cash, more than what they loaned out. And they end up where they were before the AI Bro Bubble. permalink fedilink source parent hideshow 1 child comment replies: [–] Tar_alcaran@sh.itjust.works 3 points 4 months ago But even if those companies disappear overnight, and LLMs are blanket banned worldwide, aren’t they (pun intended) still in the green? No, because they don't actually have a giant bag of money. They invest in companies who buy their product. But that product hasn't actually been made yet. Nvidia is writing it down as sale because the contract was signed, but no exchange was made. So it's like me giving you 10 bucks to buy 10 bucks off product from me in two years in return for a few percent of your profit. However, if you go bankrupt between now and actually buying my product, I will be down 10 bucks and my share of the profit. permalink fedilink source parent [–] Ophrys@lemmy.dbzer0.com 7 points 4 months ago Money is more fake every day permalink fedilink source parent [–] gravitas_deficiency@sh.itjust.works 5 points 4 months ago Yeah, any money says their books are cooked to high heaven. There’s no way whatsoever their numbers are GAAP compliant. permalink fedilink source parent [–] TropicalDingdong@lemmy.world 6 points 4 months ago A hardware company deeply invested in these other companies... you know.. investment so they buy in the hardware.. permalink fedilink source parent
[–] otacon239@lemmy.world 45 points 4 months ago (6 children) I love this at the bottom of the page permalink fedilink source parent hideshow 6 child comments replies: [–] Davel23@fedia.io 17 points 4 months ago (3 children) Yeah, but how much of that is the money that nVidia "invested" in other companies so they can buy nVidia hardware? permalink fedilink source parent hideshow 3 child comments replies: [–] Thorry@feddit.org 21 points 4 months ago Even the deals that might seem perfectly fine on the surface. Nvidia sells some hardware and the customer paid for them. However when we zoom in it's not that they actually paid for them, it's that payment is due sometime in the future. And it isn't that the hardware is actually delivered, it's what Nvidia calls buy-and-hold. This is a scheme where Nvidia holds on to the hardware till the customer has a data center ready to put them in. However it is since become clear that those data centers are never being built. And Nvidia has sold more than they have manufactured. And the customer doesn't have the funds to pay them. So on paper it's all fine and everyone is doing well, in reality it's all just a huge bubble. And yes this is super illegal, but in the Trump era it's like the Wild West out there, utter lawlessness. permalink fedilink source parent [–] brucethemoose@lemmy.world 2 points 4 months ago* (1 child) But even if those companies disappear overnight, and LLMs are blanket banned worldwide, aren’t they (pun intended) still in the green? Their stock may drop, and they lose those investments, but at the end of the day they sold hardware and made a shit ton of cash, more than what they loaned out. And they end up where they were before the AI Bro Bubble. permalink fedilink source parent hideshow 1 child comment replies: [–] Tar_alcaran@sh.itjust.works 3 points 4 months ago But even if those companies disappear overnight, and LLMs are blanket banned worldwide, aren’t they (pun intended) still in the green? No, because they don't actually have a giant bag of money. They invest in companies who buy their product. But that product hasn't actually been made yet. Nvidia is writing it down as sale because the contract was signed, but no exchange was made. So it's like me giving you 10 bucks to buy 10 bucks off product from me in two years in return for a few percent of your profit. However, if you go bankrupt between now and actually buying my product, I will be down 10 bucks and my share of the profit. permalink fedilink source parent [–] Ophrys@lemmy.dbzer0.com 7 points 4 months ago Money is more fake every day permalink fedilink source parent [–] gravitas_deficiency@sh.itjust.works 5 points 4 months ago Yeah, any money says their books are cooked to high heaven. There’s no way whatsoever their numbers are GAAP compliant. permalink fedilink source parent
[–] Davel23@fedia.io 17 points 4 months ago (3 children) Yeah, but how much of that is the money that nVidia "invested" in other companies so they can buy nVidia hardware? permalink fedilink source parent hideshow 3 child comments replies: [–] Thorry@feddit.org 21 points 4 months ago Even the deals that might seem perfectly fine on the surface. Nvidia sells some hardware and the customer paid for them. However when we zoom in it's not that they actually paid for them, it's that payment is due sometime in the future. And it isn't that the hardware is actually delivered, it's what Nvidia calls buy-and-hold. This is a scheme where Nvidia holds on to the hardware till the customer has a data center ready to put them in. However it is since become clear that those data centers are never being built. And Nvidia has sold more than they have manufactured. And the customer doesn't have the funds to pay them. So on paper it's all fine and everyone is doing well, in reality it's all just a huge bubble. And yes this is super illegal, but in the Trump era it's like the Wild West out there, utter lawlessness. permalink fedilink source parent [–] brucethemoose@lemmy.world 2 points 4 months ago* (1 child) But even if those companies disappear overnight, and LLMs are blanket banned worldwide, aren’t they (pun intended) still in the green? Their stock may drop, and they lose those investments, but at the end of the day they sold hardware and made a shit ton of cash, more than what they loaned out. And they end up where they were before the AI Bro Bubble. permalink fedilink source parent hideshow 1 child comment replies: [–] Tar_alcaran@sh.itjust.works 3 points 4 months ago But even if those companies disappear overnight, and LLMs are blanket banned worldwide, aren’t they (pun intended) still in the green? No, because they don't actually have a giant bag of money. They invest in companies who buy their product. But that product hasn't actually been made yet. Nvidia is writing it down as sale because the contract was signed, but no exchange was made. So it's like me giving you 10 bucks to buy 10 bucks off product from me in two years in return for a few percent of your profit. However, if you go bankrupt between now and actually buying my product, I will be down 10 bucks and my share of the profit. permalink fedilink source parent
[–] Thorry@feddit.org 21 points 4 months ago Even the deals that might seem perfectly fine on the surface. Nvidia sells some hardware and the customer paid for them. However when we zoom in it's not that they actually paid for them, it's that payment is due sometime in the future. And it isn't that the hardware is actually delivered, it's what Nvidia calls buy-and-hold. This is a scheme where Nvidia holds on to the hardware till the customer has a data center ready to put them in. However it is since become clear that those data centers are never being built. And Nvidia has sold more than they have manufactured. And the customer doesn't have the funds to pay them. So on paper it's all fine and everyone is doing well, in reality it's all just a huge bubble. And yes this is super illegal, but in the Trump era it's like the Wild West out there, utter lawlessness. permalink fedilink source parent
[–] brucethemoose@lemmy.world 2 points 4 months ago* (1 child) But even if those companies disappear overnight, and LLMs are blanket banned worldwide, aren’t they (pun intended) still in the green? Their stock may drop, and they lose those investments, but at the end of the day they sold hardware and made a shit ton of cash, more than what they loaned out. And they end up where they were before the AI Bro Bubble. permalink fedilink source parent hideshow 1 child comment replies: [–] Tar_alcaran@sh.itjust.works 3 points 4 months ago But even if those companies disappear overnight, and LLMs are blanket banned worldwide, aren’t they (pun intended) still in the green? No, because they don't actually have a giant bag of money. They invest in companies who buy their product. But that product hasn't actually been made yet. Nvidia is writing it down as sale because the contract was signed, but no exchange was made. So it's like me giving you 10 bucks to buy 10 bucks off product from me in two years in return for a few percent of your profit. However, if you go bankrupt between now and actually buying my product, I will be down 10 bucks and my share of the profit. permalink fedilink source parent
[–] Tar_alcaran@sh.itjust.works 3 points 4 months ago But even if those companies disappear overnight, and LLMs are blanket banned worldwide, aren’t they (pun intended) still in the green? No, because they don't actually have a giant bag of money. They invest in companies who buy their product. But that product hasn't actually been made yet. Nvidia is writing it down as sale because the contract was signed, but no exchange was made. So it's like me giving you 10 bucks to buy 10 bucks off product from me in two years in return for a few percent of your profit. However, if you go bankrupt between now and actually buying my product, I will be down 10 bucks and my share of the profit. permalink fedilink source parent
[–] Ophrys@lemmy.dbzer0.com 7 points 4 months ago Money is more fake every day permalink fedilink source parent
[–] gravitas_deficiency@sh.itjust.works 5 points 4 months ago Yeah, any money says their books are cooked to high heaven. There’s no way whatsoever their numbers are GAAP compliant. permalink fedilink source parent
[–] TropicalDingdong@lemmy.world 6 points 4 months ago A hardware company deeply invested in these other companies... you know.. investment so they buy in the hardware.. permalink fedilink source parent