6 comments
I would like to see the numbers.<p>If Nvidia sells hardware for $100B with 75% cross margin, and provides $50 billion in backstop for that same hardware, it would be still be nicely profitable deal ($25B) if the backstop capacity would be a total write-off recovering $0. Reselling that capacity in some large discount below already low backstop price would increase the profits.<p>It's all those pension funds, sovereign wealth funds and Softbank getting into that $500 billion deal that will be hurt.
Businesses aim to make the most profit possible with their resources. If they can make a 25% margin that is good, but if they can turn around sell thr same thing for a 50% margin, that is much better.<p>Basically what i am saying is maybe there is a better buyer than openai.
wobble wobble
The Möbius strip of AI financing continues…
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