22H·

Tech giants

So that I have understood this correctly now $NVDA (+0,69 %) invests 100 billion in OpenAI and OpenAI simultaneously closes a deal worth 100 billion with $AMD (+2,72 %) with Hasn't $NVDA (+0,69 %) not shot itself in the foot with that? Long live the tech bubble 🫣

17 Comentarios

Patrick ₿ateman@fastlane

22H

pretty much, yes:

1. Oracle is counting on almost USD 500 billion in non-guaranteed revenues (i.e. equivalent to the budget of the so-called Stargate project), although neither SoftBank nor OpenAI actually have the necessary money and the last quarterly results were not exhilarating either.

2) Nvidia takes over 10% of OpenAI, and the cash that OpenAI receives as a result is immediately spent on the purchase of Nvidia GPUs to the same extent.

3. AMD basically does the same thing: they give shares to OpenAI so that OpenAI can buy GPUs from AMD for the same value.

The whole thing is starting to sound like the AI version of RMBS: money is passed back and forth in the air, everyone balances fictitious values, and in the end there is a house of cards of mutual stakes and debts. Welcome to the age of AI-backed securities 😂

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Chris@Multibagger

22H

@fastlane and what does that mean for us investors? Strike while the iron is hot and take it all. The rude awakening will come, but it's still too early to go short!

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Patrick ₿ateman@fastlane

22H

@Multibagger as long as the music is playing, you should dance along but know where the exit is

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Anonym G.@Sunrise-Mantis

20H

@fastlane How do you recognize the exit?
Now that it feels like everything is taking off 🚀, I'm getting a little skeptical.
A small correction would be healthy in my opinion. 😅

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Patrick ₿ateman@fastlane

19H

@Sunrise-Mantis I would like to know that too, but a good solution would be to tighten your stop loss, not let greed take over and enjoy your profits :)

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Tenbagger2024@Tenbagger2024

19H

@fastlane
As long as no one in the cycle fails, it works.
But woe betide if one breaks off.

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investment_guru_2035@investment_guru_2035

22H

They're all going round in circles with the same billions. Oracle, Nvidia, AMD, and OpenAI in the middle. It's clearly getting too wild and speculative for me here, I'd rather take a few coals out of the whole AI circus.

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~ S.@Semos25

22H

@investment_guru_2035 So personally, if I had AMD in my portfolio, I would let it run its course, just like with NVIDIA. They are currently pushing themselves up quite a bit. Let's see how long that can last.

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investment_guru_2035@investment_guru_2035

22H

@Semos25 Yes, you can certainly do that, the biggest players won't go down the drain straight away. But I fear the whole thing could come to a bad end for some of those at the back. Just an observation and a guess. You can never know. But when the same dollar is spent several times here, it's clearly a bit of a bubble...

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