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Luke James is a freelance writer and journalist.\u00a0 Although his background is in legal, he has a personal interest in all things tech, especially hardware and microelectronics, and anything regulatory.\u00a0 ","collapsible":{"enabled":true,"maxHeight":250,"readMoreText":"Read more","readLessText":"Read less"}}), "https://slice.vanilla.futurecdn.net/13-4-25/js/authorBio.js"); } else { console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); } Luke James Social Links Navigation Contributor Luke James is a freelance writer and journalist. Although his background is in legal, he has a personal interest in all things tech, especially hardware and microelectronics, and anything regulatory.
rluker5 So OpenAI can't get a bank loan to lease the data centers it needs to produce the product it sells at a loss. Nvidia can't have one of the main drivers of it's data center business hitting a brick wall in terms of growth and making it apparent this could happen to the other drivers of it's data center business so it is considering cosigning on a $250 billion loan that probably won't be repaid. What could go wrong? Reply
bill001g Nvidia has a pile of cash but not enough to cover these huge loans if they default. The 30 billion they already invested they could just write off and still be ok. Another 600 billion if it completely defaults would take even nvidia down. More fake circular accounting going on here. If they gamble right and OpenAI survives the AI bust they will be rich but if they don't someone else is going to be buying the rights to make GPU that used to be called nvidia. Reply
alan.campbell99 If only there was a functional SEC. Reply
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/data-centers/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/data-centers/nvidia-weighs-250-billion-guarantee-so-openai-can-lease-softbanks-10-gigawatt-ohio-campus#main
- https://www.tomshardware.com/subscription
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Informational only. No financial advice. Do your own research.