I think Steve from Gamers Nexus broke this first...

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[–] 160 points 1 day ago (9 children)
  • [–] [S] 63 points 1 day ago (8 children)
  • [–] 36 points 1 day ago* (4 children)

    Yeah, fair. It does. It would just have been helpful if articles like this had been written... a little sooner.

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  • [–] 11 points 1 day ago (1 child)

    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.

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  • [–] 18 points 1 day ago

    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.

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  • [–] 96 points 1 day ago (4 children)

    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.

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  • [–] 2 points 13 hours ago (1 child)

    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.

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  • [–] 1 point 6 hours ago

    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.

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  • [–] 1 point 4 hours ago (1 child)

    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.

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  • [–] 1 point 4 hours ago

    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.

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  • [–] 81 points 1 day ago (3 children)

    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.

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  • [–] 37 points 22 hours ago (2 children)

    It's not circular financing, it's not a bubble you guys. This is all legit above table normal capiterlizum

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  • [–] 33 points 19 hours ago (1 child)

    Just billionaires doing billionaire things.

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  • [–] 27 points 1 day ago (15 children)

    This news will probably make the NVDA stock price go up.

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  • [–] [S] 33 points 1 day ago (13 children)

    I don't think so... Pretty sure it's illegal market manipulation... Someone should be going to jail for this one....

    Preferably someone rich...

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  • [–] 15 points 1 day ago (4 children)

    They might be setting up Jensen (the one non white guy in all this?) to be the fall guy for any pending economic turmoil. Let's see.

    Not saying he is blameless, but that those in power might be getting ready to say everything is all his fault alone.

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  • [–] 4 points 17 hours ago* (2 children)

    Isn't (or wasn't) he the CEO? I realize leadership taking responsibility isn't as popular a concept as it once was, but it's not like he'd be some low-level fall guy...

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  • [–] 10 points 1 day ago* (2 children)

    It's weird how you can be so right and yet so wrong at the same time. Don't get me wrong though: I don't want the wrong part to be wrong. That's not your fault.

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  • [–] 3 points 16 hours ago

    This is more likely downward pressure on the stock. Not commenting on jail time, but this is showing holes in maintaining their extortionism, and its likely to bring down sales and margins.

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  • [–] [S] 2 points 16 hours ago

    It's not though. Rules state that you can't report your own money as "sales" If NVidia is putting money into start-ups just to have them spend that money on nvidia, that's fraud. (Probably have to prove that that was the purpose...but I'm sure there's an email...there's always an email...)

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  • [–] 27 points 1 day ago (4 children)
  • [–] 14 points 1 day ago (3 children)
  • [–] 23 points 16 hours ago (3 children)

    Duh?

    It was obvious to anyone with an IQ above room temperature mayonnaise.

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  • [–] 2 points 4 hours ago (1 child)

    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

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  • [–] 22 points 17 hours ago

    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.

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  • [–] 20 points 1 day ago
    [–] 19 points 1 day ago (2 children)

    I'm shocked, I say. SHOCKED! /s

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  • [–] 19 points 23 hours ago (3 children)

    Isnt this market manipulation?

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  • [–] 15 points 1 day ago

    I am shocked. Shocked!

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  • [–] 14 points 18 hours ago

    To bad this is all coming out on the weekend Markets not open

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  • Almost seems like whomever is running this company lacks scruples!

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  • [–] 11 points 23 hours ago

    so basically act as LLC front companies.

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  • [–] 11 points 1 day ago (1 child)

    Damn right he did, along with a bunch of other tech YouTubers and Ed Zitron.

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  • [–] 7 points 19 hours ago
    [–] 6 points 19 hours ago (4 children)

    I mean that's great and all, but AMD is selling everything they make. They have Zen 6 out and it's going directly into servers.

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  • [–] 6 points 6 hours ago*

    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.

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

    Can you imagine the price drop once we raid these center?! The marketplace will be FLOODED! Cheap!

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  • [–] 5 points 1 day ago

    youdontsay.jpg

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  • [–] 4 points 3 hours ago

    My PC died 8 months ago. Still can't afford a new one. I want blood.

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  • [–] 4 points 3 hours ago

    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?

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  • [–] 6 points 1 day ago (8 children)

    That sounds like engineering creation of demand, not lack of supply.

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  • [–] [S] 23 points 1 day ago (6 children)

    With increased demand and flat supply prices went up, that was the design..

    Also - NVidia gets to post bloated sales numbers because they're not disclosing that it was their fucking money in the first place...

    I've said it before, I'll say it again.

    #eattherich

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  • [–] 10 points 1 day ago (5 children)

    #eattherich

    don't eat junk food! instead, compost and eat the veggies.

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  • [–] 4 points 1 day ago (4 children)

    Veggies never did anything cruel or environmentally destructive, I don't see why we need to eat them if they haven't done anything wrong.

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  • [–] 1 point 1 day ago (1 child)

    Gotta eat something and they’re actually good for us.

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  • [–] 2 points 16 hours ago

    Culling the hyper-wealthy is actually good for us too, and it seems like it would be a shame to let the meat go to waste. I'll consider vegetables as a side, or as a meal if we ever run out of organic, free-range, wild-caught billionaires to hunt. I am fine with their extinction, unlike other species of extinct animal, capitalism will always be able to make more. It's very sustainable.

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  • [–] 1 point 17 hours ago*

    Not when all those GPUs are rotting in warehouses and will be obsolete when the data centers they were bought for are finally built, if those data centers are ever completed at all.

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  • [–] 3 points 1 day ago (1 child)

    DO YOU LIKE MY JACKET??!?!!!?

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  • [–] 3 points 1 day ago

    Stop posting, Greg

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  • [–] 2 points 4 hours ago

    I think if you look around at the prices of so many computer components, I wonder about manipulation on those as well...

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  • [–] 1 point 18 hours ago* (last edited 16 hours ago)
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