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Instead Of Lowering GPU Prices, Former NVIDIA CEO Jensen Huang Reportedly Financed AI Startups To Absorb Excess Silicon, Shattering The Shortage Perception (wccftech.com)
submitted 11 hours ago by to c/pcgaming@lemmy.ca
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[–] 10 points 10 hours ago (7 children)

uh, the referenced wsj article doesn't really talk about this strategy at all. there's at anecdote about soup, that's basically it.

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  • [–] 3 points 8 hours ago* (last edited 3 hours ago) (5 children)

    Not a single mention of tsmc or silicon excess at all. Wccf writing fanfiction? Wrong source?

    Edit: nvm

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  • [–] 1 point 3 hours ago* (4 children)

    What do you mean? As this part interested me the most. Not just NVidea's market manipulation but the reality that the shortage was actually a glut. I dont think many analysts seen the latter coming and that could have huge implications across the industry.

    The Dot Com bubble wasnt due to new websites going under. It was the massive over supply of equipment that did not meet actual demand.

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  • [–] 3 points 3 hours ago* (last edited 3 hours ago) (3 children)

    I'm agreeing with the comment above, these things that the wccf article mentions aren't present in the article they cite as source. So either they're making it up or they linked the wrong source

    Edit: nvm

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  • [–] 3 points 3 hours ago (2 children)

    From my understanding the article exaggerates whether there was a complete shortage but the wall street journal article does confirm the CFO warned about an avalanche of excess memory and wafers coming due to circular financing schemes. That, consumer-focuses exaggerations aside, is still huge.

    It also implies much of the AI startups industry has been kept afloat by subsided computing credits which were a part of this circular funding scheme.

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  • [–] 1 point 3 hours ago (1 child)

    So it's option 3: I can't read

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  • [–] 3 points 2 hours ago*

    Doesnt help the wall street journal article is paywalled. I found other sources citing the wall street journal article which confirm that the CFO warned about an avalanche of over supply.

    https://finance.yahoo.com/markets/stocks/articles/report-jensen-huang-belittled-nvidia-145318600.html

    At the August meeting, Huang expressed concern that major cloud providers were exploring alternative chips while Nvidia faced an "avalanche" of commitments to purchase chip wafers and memory.

    Those concerns followed a financing initiative involving Huang's son-in-law, Nvidia Vice President Nico Caprez, who helped arrange financial guarantees for cloud providers and data-center developers purchasing Nvidia products.

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  • [–] 2 points 2 hours ago

    Did some digging and thought to repost in case others wonder the same:

    Doesnt help the wall street journal article is paywalled. I found other sources citing the wall street journal article which confirm that the CFO warned about an avalanche of over supply and the circular financing scheme.

    https://finance.yahoo.com/markets/stocks/articles/report-jensen-huang-belittled-nvidia-145318600.html

    At the August meeting, Huang expressed concern that major cloud providers were exploring alternative chips while Nvidia faced an “avalanche” of commitments to purchase chip wafers and memory.

    Those concerns followed a financing initiative involving Huang’s son-in-law, Nvidia Vice President Nico Caprez, who helped arrange financial guarantees for cloud providers and data-center developers purchasing Nvidia products.

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