Chipwrecked: Can Nvidia avoid the crash?
This is bad for Nvidia, how?
Who makes the newer chips?
“Nvidia has plowed plenty of money into the AI space, with more than 70 investments in AI companies just this year, according to PitchBook data. Among the billions it’s splashed out, there’s one important category: neoclouds, as exemplified by CoreWeave, the publicly traded, debt-laden company premised on the bet that we will continue building data centers forever.
CoreWeave and its ilk have turned around and taken out debt to buy Nvidia chips to put in their data centers, putting up the chips themselves as loan collateral — and in the process effectively turning $1 in Nvidia investment into $5 in Nvidia purchases. This is great for Nvidia. I’m not convinced it’s great for anyone else.”
The article is actually about all the debt. GPU backed loans which are highly questionable in terms of collateral to back lending.
If the newer GPUs make the older GPUs not profitable anymore, wouldn't companies rush to order new GPUs, benefiting Nvidia?
I don't see how Nvidia loses in this scenario.
The only way this can all "collapse" is overbuilt capacity and/or AI not being as useful. Right now, everyone is saying they don't have enough compute including Google, OpenAI, Anthropic, etc. China is desperate for Blackwell GPUs but can't get any. Every Chinese frontier lab is saying they they have the software architecture to match the US but not enough compute.