Stargate is nowhere near big enough to make OpenAI's tie-ups with AMD and Nvidia work AMD has issued OpenAI a warrant for roughly 10 percent of its stock. In exchange, the AI model giant will work with its partners (such as Oracle) to deploy up to 6 gigawatts' worth of AMD GPUs. But while Wall Street rejoices and AMD's share price rallies, OpenAI faces a very real problem. To make good on either the AMD deal or …
Basically it's a circle. NVidia spends money on OpenAI, which spends money on NVidia. Both book it as revenue, yet nobody actually makes a profit. (And replace those companies with any other players you like as well).
It's a bubble and when it bursts the fallout is going to be horrendous.
just have to read "more everything forever".
these idiots are just a bunch of rich men who are terrified of dying & think a singularity is going to come along and let them turn the entire universe into some meta human civilisation with no government that there'll be in charge of...
the sheer levels of fuckwittery is stunning, especially since a fraction of this spending could fix global hunger & climate change.
This right now is the blow off top of the market before the crash. All this self dealing for things that cannot possibly be delivered that causes 20-30% stock price increases in Oracle and AMD in a single day is crazy. There are no doubt people who were informed of this in advance and bought those stocks ahead of time, and have already been exiting Oracle and will do the same with AMD in the coming days. They wouldn't even need to disguise their trades because Trump's people who would be responsible for policing it in the SEC and DOJ are no doubt among those profiting from such advance information.
I'm thinking in the next few days it is time to buy some puts on Nvidia and the NASDAQ about 3 months out. Not enough to risk a lot of money if I'm wrong on the timing, but enough that I'll make a LOT if I'm right.
"I'm thinking in the next few days it is time to buy some puts on Nvidia and the NASDAQ about 3 months out. Not enough to risk a lot of money if I'm wrong on the timing, but enough that I'll make a LOT if I'm right."
Fair enough. But bear in mind the Trump risk. If it looks like the stockmarket is imploding on his watch, then whilst his first instinct is automatically to blame Joe Biden, Hunter Biden, Hilary Clinton etc, there's a good chance he'll pork-barrel a whole lot of government money to try and reverse a crash. And that risks a "Trump bounce", which could wrong foot your short strategy?
Trump could do that but it would only delay the inevitable - and it would make the ultimate crash worse when it comes. So if it became clear the market was rolling over and Trump stepped in trying to stop it, I'd double down with another quarter out put priced at an even more inflated value courtesy of Trump's meddling and end up better in the end.
I was thinking recently that the Oracle/OpenAI $300B deal("moment") felt sort of like when AOL acquired Time Warner, which I didn't recall exactly when that happened but just checked, looks like the announcement was January 2000, filed in Feb 2000. The Nasdaq topped out on March 10, 2000.
Modern capitalism seems to be about over-promising to raise investment. OpenAI, Tesla, all that lot only talk about how great their tech is going to be. Never about what it is now. We're coming up to the 10th anniversary of when Tesla cars were supposed to be able to drive anywhere with no human input. People were supposed to be on Mars years ago. It's all bollocks. And yet the money keeps pouring in,
Who wants all this AI? I've turned off google ai summaries and use yahoo mail as a tertiary account. They too have started ai summaries, which I also found a way to turn off. Its annoying to be slathered with ai crap I don't want even for free, let alone paying for the shit.
This whole stargate nonsense reminds me of how we kept getting that CERN super collider crap pushed at us in a bygone era you can only dream about living in now.
People back then imagined something they saw on a marvel film happening,with swirling dimentional portals opening. Then everyone forgot about it when bugger all occured.
Soon half a forest will be burnt down to answer some trivial Taylor Swift question. So at least something will be buggered this time lol.
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"buy time while it figures out how to extract enough cash from AI developments to justify the investment. "
This. Assuming Open AI "brokers" or "re-sells" it's AI capacity to others, just who is buying, do they need this much, and what's the going rate per unit of AI?
Also, time to invest in the electric companies supplying the juice. Maybe they should get in on the "buy our stock, cheap, if you commit to MegaWatt-year contracts" so that they can invest in generation and transmission equipment.
