Nvidia and chums inject $160M into Applied Digital to keep GPU sales rolling

AI has made GPUs one of the hottest commodities on the planet, driving more than $30 billion in revenues for Nvidia in Q2 alone. But, without datacenters, the chip powerhouse and its customers have nowhere to put all that tech.  With capacity in short supply, it's no wonder that VC and chipmakers alike are pumping billions of …

[UnknownUnknown]

Seems like NVidia is happy to stump up for the deposit on your debt bubble … that will burst within 5 years.

Seems little different to a car company offering you a ‘deposit contribution’ on your finance for the car you can’t really afford:

Never mind, the guaranteed future value can roll into more debt re-financing….. though you’ll be stuck with (perhaps literally) burnt out 5 year old AI kit no-one really wants.

[O'Reg Inalsin]

In the five years after the American Telecommunications Act of 1996 went into effect, telecommunications equipment companies invested more than $500 billion, mostly financed with debt, into laying fiber optic cable, adding new switches, and building wireless networks.[17] In many areas, such as the Dulles Technology Corridor in Virginia, governments funded technology infrastructure and created favorable business and tax law to encourage companies to expand.[29] The growth in capacity vastly outstripped the growth in demand.[17] Spectrum auctions for 3G in the United Kingdom in April 2000, led by Chancellor of the Exchequer Gordon Brown, raised £22.5 billion.[30] In Germany, in August 2000, the auctions raised £30 billion.[31][32] A 3G spectrum auction in the United States in 1999 had to be re-run when the winners defaulted on their bids of $4 billion. The re-auction netted 10% of the original sales prices.[33][34] When financing became hard to find as the bubble burst, the high debt ratios of these companies led to bankruptcy.[35] Bond investors recovered just over 20% of their investments.[36] However, several telecom executives sold stock before the crash including Philip Anschutz, who reaped $1.9 billion, Joseph Nacchio, who reaped $248 million, and Gary Winnick, who sold $748 million worth of shares.[37] Wikipedia

[MyffyW]

"Radio" in the 1920s, Tulips in 17th century Netherlands, to name just a few other examples

Of course the real genius (or luck) is in knowing exactly when the bubble will burst. But burst it will...

[CowHorseFrog]

How can AI be worth tens of Billions given its track record of constant failure. ?

[MyffyW]

Fools, Money, Irrational Expectations - it's like the fire triangle but for investors