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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?

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[–] 11 points 8 months ago*

Infinite funding.

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    [–] 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?

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  • [–] 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.

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  • [–] 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.

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    • [–] 12 points 8 months ago

    Now OpenAI can use this money that doesn't exist to build datacenters that no one wants built powered by infrastructure that doesn't exist, so they can offer a product no one wants to chase revenue that is impossible.

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    [–] 4 points 8 months ago

    And in other news, people drink water when thirsty.

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    [–] 3 points 8 months ago

    I hope it pops, but everyone is misquoting Nvidia. Pretty sure they said they will invest up to 100 billion, they never said a time frame and the wording implies that investment would be spread over time.

    Still f ngreedia and closedai

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    [–] 2 points 8 months ago

    They are reducing their previous deal, it used to be 100$$, now it is 30B$

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    [–] 1 point 8 months ago

    How do fundraising drives like this work? Will OpenAI's parent company issue a new class of stock or something?

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