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Comment by jedberg | Hacker News Reader

I love when Nvidia invests in AI companies. They know that money is coming right back to them. It's basically just a loan to the company in exchange for potential upside of them doing something with Nvidia's chips. :)

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"Can we have the investment partly in stock?" "I guess, but our shareholders probably won't be too happy." "No no no, not shares. I mean stock like from a warehouse, we need them cores man!"

Interesting situation with public markets funding Nvidia which is investing in its own customers, driving further strong financial results driving further public investment. A high risk high reward play. Nvidia is eating AI.

Humorously(?), you’re also exactly describing a pyramid scheme

Pyramid scheme has one source of cash and that’s new investors. This has revenue from NVidia and startups adding to the system. It’s just capitalism.

Nvidia is likely to have a $36-40 B revenue year this year and next because of massive customer investments. Meta is spending $8 B on their gear and about the same next year. OpenAI+Microsoft are likely following suit with several billion in server buildout. I'm curious if Google or Apple will be adding large swaths of AI boxes to their fleet too.

Ridiculous. This implies infinite supply. Neither the supply chain, nor nature is designed to churn out GPUs like this. That $ will take time to be captured.

> They know that money is coming right back to them.

Oh I assumed they were directly delivering them truckful of A100s? do they actually still bother with cash? ;-)

Exactly and it would be extremely stupid for them not to take advantage of their current market position. It's a now or never situation IMO.

> They know that money is coming right back to them.

it is totally can be condition of investment round: have specific vendor as compute provider.

It could be, but I'm guessing they don't even have to.

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