Nvidia dismisses "circular financing", says every $1 it invests brings back $100

alexdns

nvidia invests $1 in AI company , datacenters with GPUs , AI company / datacenters buy $x worth of GPUs from NVIDIA , in a circle

behnamoh

Nvidia is full of shit. Leatherman thinks Astra = AGI.

nicman23

are those 100$ in the room with us right now

youoy

Woah, better than Madoff! How can i give him money?

wartywhoa23

Those $99, where do they come from?

iammjm

Where are those 99$ coming from? Who is actually paying this money? Because it seems like so far everybody is losing money with no reversal of this trend in sight

blitzar

I don't know about $100 back ... but their profit margin is $0.90 on the gpu that is bought with the $1 they lend / swap for equity + they get ongoing interest / equity stake. Its a mighty fine deal for Nvidia

vardump

I first read that "every $1T brings back $100", thinking, wow, is it THAT bad? No, it's very unlikely at this point every $1 Nvidia invests brings back $100. Stating something like that is almost a red flag that things are overheating.

sajithdilshan

100$ for every 1$ invested would definitely be branded as a ponzi scheme if it was done by a regular Joe

andrepd

Reads like satire. "I get 100$ for every 1$ I put in" is exactly the kind of phrase that triggers ponzi alarm bells on anybody reading this x)

vrganj

You see, it's not a circle, it's a pyramid! Just buy in right now and you'll get unprecedented returns! Nothing could possibly go wrong! My name is Charles Ponzi and I approve of this message.

Flavius

So for every trillion that was invested, 100 trillion were made. Got it.

bhouston

It is a bit circular but it also a growing real market. NVIDIA is accelerating the market and also making money. It is a smart strategy on their part. We are not at the top of this trend yet so I do not see this as over investment. I remember the criticism Microsoft got for investing in Facebook/Meta that gave them a whooping $15B valuation and getting 1.7% in 2007. Not all deals will turn out that prescient but a few will and make up for any duds. This is a real market.

RugnirViking

Amazed by these comments? Yes, it seems very possible to me that Nvidia makes a lot of money. They are literally the largest company in the world. Who pays? Only all the companies, desperately raising as much capital as possible, issuing new stock to do it, going for unprecedented investment rounds, burning cash reserves to fund the largest data centre rollout in history. Who builds the things that go into said datacenters? The thing that has also raised in price dramatically in recent years?

Ekaros

So if they just had spare 100 billion they could make 10 trillion? Sounds reasonable and plausible right? Sadly market manipulation is not being prosecuted.

silverFork

A la Enron but completely legal. It is not just a circle, it is more like a swirl. Wallstreet invested in Ai Farms to purchase NVDA chips and then NVDA invested in Ai Farms and not only that it is investing in its customer, Anthropic and its IPO.. They are recycling the cash that they harvest from stock markets till it becomes the famous singularity in funding like a financial hurricane.

Eddy_Viscosity2

10,000% growth! No way that could be wild claim! How dare we doubt them.

ozgrakkurt

Like a grade school student claiming they peed for 10 minutes straight yesterday

fwlr

It’s not circular because we put a little bit of money in, and a lot of money comes back Ah yes, it’s not circular, because it’s a pyramid.

hacker_88

They sell shovels in the gold rush and invest on the miners as well. The gold is the tokens . As long as the tokens are consumed,they are fine .