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- Hacker News
- The Möbius strip of AI financing continues…by Noaidi
- The numbers have become so large that normal corporate risk management starts looking quaintby KurSix
- In other words: the investments that were never going to happen are not going to happen.by behnamoh
- This is probably a lot more related to the fact they want to make GPUs an asset class. Nvidia is banking on the fact there will be an entire market that will guarantee whatever anyone needs.
- I would like to see the numbers.
If Nvidia sells hardware for $100B with 75% cross margin, and provides $50 billion in backstop for that same hardware, it would be still be nicely profitable deal ($25B) if the backstop capacity would be a total write-off recovering $0. Reselling that capacity in some large discount below already low backstop price would increase the profits.
It's all those pension funds, sovereign wealth funds and Softbank getting into that $500 billion deal that will be hurt.
by u1hcw9nx - Nvidia is turning into a savings and loan company that happens to design computer chips on the side. What could possibly go wrong.by cmiles8
- 'May guarantee' is an oxymoron I've never come across before. Mangled headline.
The article title is "Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports".
- It's worth noting that this is deal that has never been signed previously.
There's a release from DoE about it: https://www.energy.gov/articles/fact-sheet-department-energy...
That's a horrible amount of gas energy generation.
https://www.datacenterdynamics.com/en/news/openai-in-talks-t... has more details. The whole campus build could be as much as $500B.
Would that be the most expensive single thing ever built? The ISS cost around $150B and is commonly said to be the most expensive single item, but that does include running costs.
by nl