NVIDIA Offers GPU Compute to Startups for Revenue Share - Circular Financing Circles Drain
AI Summary
Eli the Computer Guy expresses strong skepticism about the current AI boom, labeling it a "bubble" and a "fraud." He highlights Nvidia's new program offering compute power to startups in exchange for a revenue share as a key indicator of this, arguing that if demand for GPUs were truly high, Nvidia would simply sell them for cash. The speaker challenges the narrative of GPU scarcity, citing instances of "dark GPUs"—unutilized capacity—at major companies like Microsoft, XAI, and Meta. He points out that Satya Nadella mentioned Microsoft's GPUs weren't lit up in December, and that XAI had hundreds of thousands of GPUs available for rent, with Anthropic and Google reportedly renting significant quantities. Furthermore, Mark Zuckerberg announced Meta's intention to rent out its compute services, contradicting the idea that every GPU is immediately put into production. Eli the Computer Guy compares the situation to a Ponzi scheme, suggesting the industry is too deeply invested in this "fraud" to stop, and asserts that Nvidia's $5 trillion valuation is based on this premise. He also questions Nvidia's long-term dominance in the AI space due to increasing competition from companies like Google (with TPUs) and Meta (partnering with Broadcom and Qualcomm). He concludes that these complex financing schemes are a desperate attempt by Nvidia to boost sales of hundreds of thousands of GPUs that lack a better market. The speaker believes that if the AI business were truly thriving, companies would not need to devise such elaborate strategies.
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All claims →- Eli the Computer Guy compares the current AI situation to a Ponzi scheme, where the deeper one gets into the financial fraud, the harder it becomes to exit without making victims whole.tech·Seen in 1 video
- Cloud-based AI firms, model builders, and other enterprises will share both product and cloud revenue with Nvidia through its new partnership program.tech·Seen in 1 video
- Nvidia's new partnership program, announced on a Thursday, offers fast-growing AI startups token credits to power their development in exchange for a slice of future profits.tech·Seen in 1 video
- Anthropic is reportedly renting approximately 220,000 to 240,000 GPUs from XAI.tech·Seen in 1 video
- The prevailing narrative has been that every GPU purchased is immediately put into production.tech·Seen in 1 video
- During the dot-com boom, fiber optic lines were laid but never powered on, a phenomenon referred to as "dark fiber."tech·Seen in 1 video
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