End of the 'GPU Bubble' and NVIDIA Finally Admits It Won't Bail Out Microsoft OpenAI Anymore
Finally NVIDIA admits that its circular financing (financial/accounting fraud) isn't sustainable and the 'GPU bubble' shows signs of wear if not implosion:
Over-supply of GPUs (many aren't even used, some are still boxed after mass-purchase)
What we said less than a month ago about NVIDIA has aged well. We said Microsoft and NVIDIA can't and won't save OpenAI anymore. Even the pseudo-Japanese (Saudi money, paying for itself) SoftBank is struggling to pay OpenAI or is increasingly reluctant to give it any loans (which it would never be able to repay or pay back).
Microsoft sank deep into debt (in spite of all the layoffs!) and its stock too sank. Investors come to grips with slop being a pile of nonsense. Just like fake-coins and NFTs.
Is this the end of the NVIDIA bubble? The company did some hiring sprees this past year (it even hired a relative of mine, but he plans to leave; he says it's stressful and he recognises they ride a bubble).
In China, the Cheeto guy allowed NVIDIA to sell chips (belatedly, as they ran out of places in which to grow), but Chinese regulars are still not allowing it because they don't trust NVIDIA and correctly assume that NVIDIA hardware is likely just a 'Cheetoian' Trojan horse with back doors and fake 'security' (US national 'security', spy-ware made by actual spies). What happened in Venezuela a month ago (cyberattack followed by bombs and kidnappings) would only affirm such policies. █