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[–] 3 points 13 hours ago (3 children)

And they are in fact selling an exceptional amount of shovels.

To the retailers. They are selling wholesale to the retailers, on credit. They are lending, with extra steps.

Customers aren't buying enough shovels to service even the interest on these debts. The retailers are not bringing in anywhere near the revenue necessary to make this process sustainable.

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  • [–] 2 points 11 hours ago (2 children)

    Any sources that nvidia is giving them the GPUs on credit and not the AI companies using credit to give nvidia cash?

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  • [–] 3 points 11 hours ago (1 child)

    Here you go, pal

    "Nvidia’s equity investments stood at $99 billion as of July 26, up sharply from a year earlier as it expands its financial backing across the AI sector.

    Investments span frontier AI labs, cloud providers and infrastructure companies, including OpenAI, CoreWeave and Nebius.

    Capital has increasingly become a key play for Nvidia.

    In August, the company announced partnerships with major investment firms aimed at mobilizing more than $500 billion worth of financing for Nvidia’s graphics processing units (GPUs) and said it would provide up to $105 billion of conditional credit support for an OpenAI data center in Ohio. Nvidia also announced Thursday it is planning to acquire AI startup Hugging Face for $12.9 billion."

    They are buying up shares all over the AI sector, which is essentially Nv lending them money, with which these companies can buy their GPUs.

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