▲ 282 ▼ Firm that lets you rent out your idle Mac for AI inference workloads warns of plummeting token costs — Darkbloom network sees earnings drop to $1.23 a day as Anthropic tokens fall 77%. (www.tomshardware.com) submitted 1 week ago by eicker@lemmy.world to c/technology@lemmy.world 82 comments fedilink hide all child comments
[–] tburkhol@lemmy.world 26 points 1 week ago (6 children) During a gold rush, you want to be the guy selling shovels. permalink fedilink source parent hideshow 6 child comments replies: [–] Jiral@lemmy.world 11 points 1 week ago (4 children) You do, however Nvidia got greedy and started to circular invest in the billions if not trillions into those buying the shovels. Now, when the bubble bursts, Nvidia will be hit massively as well. permalink fedilink source parent hideshow 4 child comments replies: [–] aesthelete@lemmy.world 6 points 1 week ago (3 children) Eh somewhat. I think they were careful enough to just have the loans not actually be in their name if you follow it as deeply as Ed Zitron has. But Nvidia is screwed from a different angle as they've set up expectations of selling more GPUs to data center builders each quarter in order to justify their share price. That's still much better than holding the actual bag though. permalink fedilink source parent hideshow 3 child comments replies: [–] boonhet@sopuli.xyz 2 points 1 week ago Nvidia did a massive share buyback with a portion of the ridiculous profits they made last year. That serves to temper expectations, as they're signaling that they're not going to be investing all their profit in yet more production (which is difficult anyway given they don't have their own fabs and TSMC seems to be running at full capacity). Likely they'll be doing another one next year and shareholders will be happy. permalink fedilink source parent [–] Jiral@lemmy.world 1 point 1 week ago (1 child) If they can refinance their own customers to buy their own products without getting caught in the middle that would be even more scandalous than the circular financing itself but then, the financial system has been completely broken for a good while. permalink fedilink source parent hideshow 1 child comment replies: [–] aesthelete@lemmy.world 1 point 1 week ago They're basically operating as a kinda/sorta backstop on the loans by saying they'll rent them back if everything falls through and be a guaranteed customer...but I think they did so in snaky legalese that lets them ultimately get away without actually renting them. I think it's through like subsidiaries and shit. Oracle is one of the actual bag holders and I think there are several others. They set up shell companies for each specific data center project and shit. It's quite the fucking racket and should pretty obviously be illegal from multiple angles. permalink fedilink source parent [–] peopleproblems@lemmy.world 3 points 1 week ago That's the best way to describe this. permalink fedilink source parent
[–] Jiral@lemmy.world 11 points 1 week ago (4 children) You do, however Nvidia got greedy and started to circular invest in the billions if not trillions into those buying the shovels. Now, when the bubble bursts, Nvidia will be hit massively as well. permalink fedilink source parent hideshow 4 child comments replies: [–] aesthelete@lemmy.world 6 points 1 week ago (3 children) Eh somewhat. I think they were careful enough to just have the loans not actually be in their name if you follow it as deeply as Ed Zitron has. But Nvidia is screwed from a different angle as they've set up expectations of selling more GPUs to data center builders each quarter in order to justify their share price. That's still much better than holding the actual bag though. permalink fedilink source parent hideshow 3 child comments replies: [–] boonhet@sopuli.xyz 2 points 1 week ago Nvidia did a massive share buyback with a portion of the ridiculous profits they made last year. That serves to temper expectations, as they're signaling that they're not going to be investing all their profit in yet more production (which is difficult anyway given they don't have their own fabs and TSMC seems to be running at full capacity). Likely they'll be doing another one next year and shareholders will be happy. permalink fedilink source parent [–] Jiral@lemmy.world 1 point 1 week ago (1 child) If they can refinance their own customers to buy their own products without getting caught in the middle that would be even more scandalous than the circular financing itself but then, the financial system has been completely broken for a good while. permalink fedilink source parent hideshow 1 child comment replies: [–] aesthelete@lemmy.world 1 point 1 week ago They're basically operating as a kinda/sorta backstop on the loans by saying they'll rent them back if everything falls through and be a guaranteed customer...but I think they did so in snaky legalese that lets them ultimately get away without actually renting them. I think it's through like subsidiaries and shit. Oracle is one of the actual bag holders and I think there are several others. They set up shell companies for each specific data center project and shit. It's quite the fucking racket and should pretty obviously be illegal from multiple angles. permalink fedilink source parent
[–] aesthelete@lemmy.world 6 points 1 week ago (3 children) Eh somewhat. I think they were careful enough to just have the loans not actually be in their name if you follow it as deeply as Ed Zitron has. But Nvidia is screwed from a different angle as they've set up expectations of selling more GPUs to data center builders each quarter in order to justify their share price. That's still much better than holding the actual bag though. permalink fedilink source parent hideshow 3 child comments replies: [–] boonhet@sopuli.xyz 2 points 1 week ago Nvidia did a massive share buyback with a portion of the ridiculous profits they made last year. That serves to temper expectations, as they're signaling that they're not going to be investing all their profit in yet more production (which is difficult anyway given they don't have their own fabs and TSMC seems to be running at full capacity). Likely they'll be doing another one next year and shareholders will be happy. permalink fedilink source parent [–] Jiral@lemmy.world 1 point 1 week ago (1 child) If they can refinance their own customers to buy their own products without getting caught in the middle that would be even more scandalous than the circular financing itself but then, the financial system has been completely broken for a good while. permalink fedilink source parent hideshow 1 child comment replies: [–] aesthelete@lemmy.world 1 point 1 week ago They're basically operating as a kinda/sorta backstop on the loans by saying they'll rent them back if everything falls through and be a guaranteed customer...but I think they did so in snaky legalese that lets them ultimately get away without actually renting them. I think it's through like subsidiaries and shit. Oracle is one of the actual bag holders and I think there are several others. They set up shell companies for each specific data center project and shit. It's quite the fucking racket and should pretty obviously be illegal from multiple angles. permalink fedilink source parent
[–] boonhet@sopuli.xyz 2 points 1 week ago Nvidia did a massive share buyback with a portion of the ridiculous profits they made last year. That serves to temper expectations, as they're signaling that they're not going to be investing all their profit in yet more production (which is difficult anyway given they don't have their own fabs and TSMC seems to be running at full capacity). Likely they'll be doing another one next year and shareholders will be happy. permalink fedilink source parent
[–] Jiral@lemmy.world 1 point 1 week ago (1 child) If they can refinance their own customers to buy their own products without getting caught in the middle that would be even more scandalous than the circular financing itself but then, the financial system has been completely broken for a good while. permalink fedilink source parent hideshow 1 child comment replies: [–] aesthelete@lemmy.world 1 point 1 week ago They're basically operating as a kinda/sorta backstop on the loans by saying they'll rent them back if everything falls through and be a guaranteed customer...but I think they did so in snaky legalese that lets them ultimately get away without actually renting them. I think it's through like subsidiaries and shit. Oracle is one of the actual bag holders and I think there are several others. They set up shell companies for each specific data center project and shit. It's quite the fucking racket and should pretty obviously be illegal from multiple angles. permalink fedilink source parent
[–] aesthelete@lemmy.world 1 point 1 week ago They're basically operating as a kinda/sorta backstop on the loans by saying they'll rent them back if everything falls through and be a guaranteed customer...but I think they did so in snaky legalese that lets them ultimately get away without actually renting them. I think it's through like subsidiaries and shit. Oracle is one of the actual bag holders and I think there are several others. They set up shell companies for each specific data center project and shit. It's quite the fucking racket and should pretty obviously be illegal from multiple angles. permalink fedilink source parent
[–] peopleproblems@lemmy.world 3 points 1 week ago That's the best way to describe this. permalink fedilink source parent