I think Steve from Gamers Nexus broke this first…
GTA and Ocarina of Time are literally re skinned 30 year old titles.
how much information can you cram into a single pixel and still call it innovation?
Seeding your customer base isn’t some evil plot. It makes sense.
The circular gpu/ai economy is old news. Is this just making the rounds again hoping that people will pay attention this time? Or did the Wall Street Journal ignore it the first time because $$$ but now they’re getting nervous?
I think the depth of it is finally getting traction…coupled with Huang’s wang troubles, it’s bringing it all to the surface again…
Didn’t Steve from Gamers Nexus talk about this a long time ago? He’s been on top of all the sketchy Nvidia stuff fair more consistently than mainstream media.
My PC died 8 months ago. Still can’t afford a new one. I want blood.
I’ve been recommending people find a cheap pre-built to start with, then upgrade as money comes available…
If only cheap prebuilds existed anymore.
Most of them are still cheaper than buying components…
I think if you look around at the prices of so many computer components, I wonder about manipulation on those as well…
Duh?
It was obvious to anyone with an IQ above room temperature mayonnaise.
I’m not sure that’s true. A huge, growing demand for chips that chip companies invest in to accelerate the utility of their product is one thing and seemed very reasonable.
An excess of supply at the global scale that is being propped up by insider deals to start ups is something you wouldn’t expect to be possible to keep a secret. Most ships are leaky and it’s not the CEO who gives it up.
How many people work at Nvidia in their supply chain? A bunch of people had to know and it’s surprising to me that nobody would squeal.
Yes, but the money mostly blinded them. Now imagine the consequences: lynchpin systems coded by ai nobody knows how to maintain running some of the most critical systems running our society. Yay fucking yay
sounding an awful lot like 40k.
next thing you know idiots will be soothing machine spirits by slathering computers in sacramental oils and lighting incense.
The situation described in the report saw NVIDIA on the hook for an “avalanche” of GPUs from TSMC, for which it would have no immediate buyers. Part of the issue highlighted by Kress was also that these small-scale cloud providers NVIDIA was investing in could not afford to buy NVIDIA GPUs, meaning they, too, could be a financial dead end.
This is big. Nvidia also didn’t show up in last few weeks for OpenAI’s financing desperation. There were bigger 5090 shortages this summer, as rumour that datacenters were being built around them, after rtxpro shortages.
Nvidia circular financing started off the bubble. But it needs new bagholders, and its sales/extortion power plummets as its investments fail. OpenAI failure brings down the industry financial backers, though it makes GPUs/RAM cheap again.
If it’s legal then Nvidia has managed to grab huge shares in AI companies. If chips become cheap now, AI companies will make profits and Nvidia benefits from having the shares.
Expensive GPUs aren’t the reason they aren’t profitable.
it makes it easier for cloud services, though these will remain competitive. It makes it easier to escape the cloud too, or to directly rent GPU VM spaces.
…WE KNOW.
It bears repeating… ;-)
Yeah, fair. It does. It would just have been helpful if articles like this had been written… a little sooner.
They were, just got ignored by most mainstream journalists and outlets. Ed Zitron and several others have been all over this for a while
Corporate media was too busy backing fascism.
Its funny because bloomberg has a video on them… Despite being the conpany who was trying to silence Gamers Nexus last year about the smuggling topic.
May the Flying Spaghetti Monster bless Gamers Nexus in pepetuity. That kind of intersection between raw intelligence and testicular fortitude is getting far too rare these days.
We’re lucky to have them.
Brown, black, or white?
Giant short-faced
Kodiak
Just billionaires doing billionaire things.
All the fish are swimming in the water. Bubble, bubble, bubble pop.
Coming soon: A class action lawsuit against NVidia for everyone that bought a graphics card between the dates of X and Y who will eventually receive a 15$ cheque in the mail 5 years from now.
While the lawyers get like $10,000 per
That is how doing actual work be
Nooooooo I want to feel cheated on by the corrupt system!
Um… wasn’t this well known? They’d buy up struggling companies, then secure a purchase agreement for GPUs through those companies in order to inflate their sales figures. They did this. A lot.
It hits different when the claim is coming from inside. Most of us could see the circular investment scheme, now they’re blaming each other internally for it.
The whole system is predicated on moving money. Capitalism at its finest. Glad some whistleblowers are seeing the light. Hope it results in some restoration of sanity. As usual, the suckers and the rest of us will end up footing the bill.
I didn’t know they allegedly had more GPUs than they knew what to do with, which is what the report says. Up until now, the public knowledge has been that the AI bubble has been used to justify sketchy deals like circular financing in an attempt to chase the unlimited profits promised by the discovery of AGI. As though they had no trouble selling them, but wanted to sell them in a way that also cut them in on future AI advancements.
Now imagine the ai companies spending billions on compute that, so far, none of their clients know how to turn into cost savings. Questionable results, large volume, no appreciable business benefit.
It’s not circular financing, it’s not a bubble you guys. This is all legit above table normal capiterlizum
“It’s inevitable. That’s why we have to pay the people under us to force it on the people under them. So get used to using it- or be left behind!”
… Not to meme, but, why not both?
If you can barely tell the difference, things are moving in the wrong direction.
It is right up until you report the “sales” numbers… Sales numbers can’t include your own money.
To bad this is all coming out on the weekend Markets not open
Can you imagine the price drop once we raid these center?! The marketplace will be FLOODED! Cheap!
Knowing the government they’d order them all destroyed to keep the market afloat…
