None of the AI companies are making money, Nvidia is making some, but large amounts of it’s worth much like the other tech companies involved is fictional. All based on circular finance and buying through third parties to cover actual costs. It’s as corrupt as you can get.
Nvidia, SK Hynix, Samsung and Micron are the only ones in this whole business that actually make large amounts of money, because they are the people selling the pickaxes and shovels for the gold rush. (Micron reported an absolutely insane 89% margin on the chips that go to vendors supplying the consumer market a few weeks ago - that number was around 30% before this madness started)
I agree that NVidias money flows are circular, but all that investor money that flows into AI companies is moving to those 4 companies and to pay the power bills.
Nvidia booked $63.7bn operating income last quarter, and the equity gains you’re thinking of are a separate $7.8bn line underneath that. AWS made $17.8bn operating profit and Google Cloud $11.1bn in the same period, off customers who actually paid.
There’s nothing illegal or corrupt about Anthropic purchasing compute from SpaceX.
None of the AI companies are making money, Nvidia is making some, but large amounts of it’s worth much like the other tech companies involved is fictional. All based on circular finance and buying through third parties to cover actual costs. It’s as corrupt as you can get.
Nvidia, SK Hynix, Samsung and Micron are the only ones in this whole business that actually make large amounts of money, because they are the people selling the pickaxes and shovels for the gold rush. (Micron reported an absolutely insane 89% margin on the chips that go to vendors supplying the consumer market a few weeks ago - that number was around 30% before this madness started)
I agree that NVidias money flows are circular, but all that investor money that flows into AI companies is moving to those 4 companies and to pay the power bills.
Nvidia booked $63.7bn operating income last quarter, and the equity gains you’re thinking of are a separate $7.8bn line underneath that. AWS made $17.8bn operating profit and Google Cloud $11.1bn in the same period, off customers who actually paid.
There’s nothing illegal or corrupt about Anthropic purchasing compute from SpaceX.