NVIDIA Corp Lost 36% of Its "Value" Since Cheeto Inauguration, But "Gen Hey Hi" (GenAI) is Totally Not a Bubble
Selling loads of unneeded hardware based on hysterical hype; like selling shovels during a Gold Rush
Yesterday: Why Microsoft's Shares Sank Almost 20% in Recent Months (the Bubble is Imploding)
NVIDIA Corp was riding a wave of mindless hype and was thus willing to invest in the hype, delaying rather than preventing the inevitable. All those GPUs that "flooded the market" will soon lose a lot in value due to oversupply; then what? Why will buy from NVIDIA?
NVIDIA is basically like British toilet paper companies in March 2020.
For those who know a thing or two about NVIDIA (including the company's history), there's no such thing as "AI datacentres" or "AI servers" or "AI chips". Those are just glorified GPUs (the "G" goes back to Silicon Graphics et al), optimised for some purpose or workload. In a way, NVIDIA does not have much to offer except "bang for the buck" for those looking to do a lot of computational loads (no matter how useless or worthless) in a small physical space. Call it CUDA on steroids or CUDA+++.
I have heard from and personally met people who envy NVIDIA for no reason another than money. The underlying technology does not interest them. Some of them cannot understand any of it or grasp what the downsides are. NVIDIA is based on many false perceptions. The shareholders like it. It's like talking to "Crypto Bros" about fake currencies that no business would even accept. They live in their own little universe, if not a giant black hole (or pyramid scheme).
Now, regarding the "AI" hype, none of the implosion/s should surprise us. The signs have been on the wall for years (2023) and last year Baidu’s CEO said what many of us knew all along, even if deep inside (many are shy to talk down a perceived "novelty" that the media keeps talking about; people don't want to be stigmatised as dumb or Luddites). Now even Microsoft Gartner says the same (to belatedly save face).
Enough with that stupid gold rush and those misguided investments. Stop tying people's pensions to a giant pyramid scheme, i.e. offloading the costs without proper consent.
The real Microsoft news isn't some anniversary but the breaking of its (false) promises like all this "investing in AI" bribery tour (with money that does not exist*!).
Don't just blame "tariffs". Yes, they're bad, but the real issue here is that companies do not have the "market value" they insisted on. The executives gave themselves massive bonuses based on the lies they kept advancing while asking for patience. █
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* Promises are cheap and "credits" cost nothing. OpenAI is also deep in debt and SoftBank does not have the money it says it can give to OpenAI - the making of another Ponzi scheme? "SoftBank's political ties/origins ought to be mentioned," said an associate. Like the KSA-connected Blair Institute, it has its own interests, so it "sides with big tech over AI copyright," says The Register. "The "we" here is doing some heavy lifting and presumably refers to the report's authors," The Register notes. It's not a secret that the Blair Institute is closely tied (commercially) to "big oil", i.e. the energy profiteers. They profit when sites are attacked by scrapers and models are built, then used a lot and heavily (queries require a ton of energy) for reckless plagiarism. Selling more oil relies on waste. SoftBank would like more of that waste. Follow the oil. They don't mind nasty scrapers, lies, plagiarism etc. The oil is used to attack information itself; the LLMs cannot do anything else; they also deplete the pool of unadulterated (i.e. not "synthetic") pages - to the point where Wikipedia is foaming at the mouth, bemoaning what LLMs do to it. We think that's the end - the implosion of a bubble that merely vexes everybody. Companies that claim to have gained "value" because of this bubble are well overdue for a reality check.