5 billion doesn't look like much when OpenAI just raised $110b though. And how sustainable is NVDA's immense profits if this bubble actually bursts?
Just about all of the AI providers "raises" are a fraction of the reported "raise", like this one.
They didn't "raise" $100b. They got commitments for $35b, with said commitments being dependent on meeting certain criteria.
Every "raise of $FOO" I've seen in the past year or two has not resulted in them getting their hands on $FOO in cash to spend.
What do you mean "just yet" :-)
I don't really know how likely it is that the money being committed will actually exist when the time comes (Softbank's commitment didn't exist, they had to sell off assets and rope in other investors to meet their commitments).
Maybe it is very likely to exist, but, really, who knows?
IOW, your statement would be equally true by ending the sentence at the word "exist".
I really cannot tell. To be frank, I seriously doubt that they can tell either.
It's small because few people go to the bank to withdraw a suitcase of $100 bills, it's a weird time series to pull up because it's not really indicative of anything outside of narrow interests for regulators and the mint - it's probably some conspiracy theory trope from crypto bros or something.
Most money exists purely in electronic form these days.
Monetary base [0] which includes the digital money banks have on deposit at the Fed, is over $5 trillion, and even that is tiny compared to M1 [1] which includes the kinds of things backing your money market account, which is around $19T.
When money is invested, they're going to wire it, not pull up with wheelbarrows full of bills.
0. https://fred.stlouisfed.org/series/BOGMBASE 1. https://fred.stlouisfed.org/series/M1SL
I think GP was making the point that the "money" doesn't exist even in electronic form.
GP should have used Monetary Base if they wanted to consider purely electronic cash (that is not a result of any fractional reserve stuff at all), which is over $5T disproving their point.
Edit: I see this was covered in other replies