15
Nvidia close to investing $30 billion in OpenAI's mega funding round, source says (www.reuters.com)
submitted 8 months ago by to c/technology@lemmy.ml
9 comments fedilink hide all child comments
 

Just FYI the previous deal was $100 billion, will we see the bubble pop soon? Can I buy RAM or any fricking component now?

you are viewing a single comment's thread
view the rest of the comments
[–] 8 points 8 months ago (2 children)

Isn't OpenAI also investing heavily into Nvidia? How the hell does that work? They're just circulating money around?

  • permalink
  • fedilink
  • source
  • hideshow 2 child comments
    •
  • [–] 7 points 8 months ago

    Yes, yes they are.

    I’m not qualified to explain this well. But there’s the concept of velocity of money. The higher velocity that’s supposed to mean the economy is doing good. Generally it’s between lots of people so it’s spread out. In this case it’s only between a small handful of companies, and as soon as it starts drying up then bad things can happen really quickly.

  • permalink
  • fedilink
  • source
  • parent
  • [–] 5 points 8 months ago

    The full circle is actually Nvidia for the hardware, OpenAI for the software, Oracle for the infrastructure provider for the datacenters, and SoftBank for the financial support. Each one injects money into the other, it's called round tripping and it's the same thing that happened during the dot com burst.

    Company A “buys” hardware from Company B. Company B simultaneously “invests” in infrastucture from Company A. Both record revenue — even though no real demand existed. The difference is that in reality this circle consists of various companies.

  • permalink
  • fedilink
  • source
  • parent