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by sn0wr8ven 61 days ago
They are not convinced, simply worried. If you look at Nvidia, Microsoft, OpenAI, Oracle, etc that is sort of passing around 100B usd without it actually resulting in anything being produced, it becomes worrying. I don't think the author is convinced, simply worried.

Specifically, it is the act of "I will invest 100 Billion in you, you will use that money to buy 100 Billion worth of goods from me. Both our balances look good, none of us spent anything." As I understand it, this act isn't so uncommon in finances but never on this scale across this many companies.
2 comments
senordevnyc 61 days ago
But later they talk about we’ve blown $1.4T on this…so is the money being spent, or not?
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sn0wr8ven 60 days ago
Fairly certain the $1.4T is OpenAI's (and only OpenAI) proposed budget to build their super cluster. That is not the money being spent that is the money one company needs to try out their idea.
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simianwords 61 days ago
Do you actually think nothing is being produced?
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sn0wr8ven 61 days ago
Not nothing but nothing compared to the amount being ordered and invested. I think Nvidia has enough orders to go to 2027, so they are way behind. A lot of companies though, aren't using even the limited amount of hardware being produced now, and this is from Microsoft, Meta, etc. The hardware side is certainly way behind the production. The software side is sort of clear for most people. None of the companies are really making returns on 100B investments, fairly evident given recent estimates and project shutdowns, SORA in particular. So when the 100B or I think 1 trillion is being quoted around now, is just floating, resulting in limited goods, and limited value from the limited goods, it becomes worrying. Because the extra valuations isn't resulting in extra value simply limited if not negative value.
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vrganj 61 days ago
If I give you an IOU for 10 bucks and you give me one in return, did we just produce 20 bucks?
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simianwords 61 days ago
That's not what is happening and frankly surprised that people believe this stuff
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vrganj 61 days ago
That is precisely what is happening.

https://www.barrons.com/articles/nvidia-microsoft-openai-cir...

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simianwords 61 days ago
doesn't open
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