Post

Holy South Seas Bubble, batman.

Enron could only dream of such a scenario.

How do you know this isn’t the plan? Financial engineering by the large tech companies to keep significant capex of buying GPUs off their balance sheets? They can then hide the huge depreciation expense, protect margins and returns from market questions and parade as “capital light” businesses again

...of the VC funding that was floating all these websites flowed downhill to Google, which was serving the ads. I'm also reminded of the small town in New Jersey whose residents made it through the Depression by taking in each others' laundry. I feel like that's next.

current world alongside 1984, Brave New World, The Handmaiden, and of course Don't Create the Torment Nexus.

Meanwhile standard graphic GPUs are becoming rarer and rarer with each generation to the extent that large GPU clients are trying to make their old workloads look like AI ones just so they can use the new chips, a tremendous use of everyone's time

Yet what worries me the most is that when you remove the contracts paid for by Microsoft, NVIDIA, Amazon and Meta, there's barely any demand for AI Compute. Private equity is effectively feeding hundreds of billions of dollars to NVIDIA until the neoclouds die. www.wheresyoured.at/is-there-any...

Is it a Ponzi scheme?

Every time companies reinvent the concept of “a bank,” it goes badly. Especially when said bank is (a) not recognized as such and (b) not regulated. Time to reread David Liss’ “A Conspiracy of Paper,” to remind myself that everything old is new again. Also, Thank you for all you do, Ed.

So when I was asked to interview to help the NVIDIA engineers in this program be able to communicate better, because, face it, they aren't the most social beings on the planet, I was told GPUs are basically it, have always been it, always will be it for NVIDIA, they just need to sell that publicly

I have never understood why anybody ever would accept GPUs as collateral for debt. It's like taking on debt to do a barbecue, and the charcoal is the collateral for the debt.

That's not the fed. There is only one Trump dot on the dot plot so far. They may get there but the US dollar will collapse first.

Hi Ed. Just to say this in your latest newsletter is literature of the highest order: "handing some Patagonia gargoyle's favourite son $10 million" Just bravo.

This all sounds like Theodore Rozackd cult of information. Develop a technological need, not to solve an actual problem, but just to sell processors.

This is a repeat of what Cisco did in the late 90’s - investing in dotcoms who used the cash to buy Cisco gear. Guess how that worked out.

Nvidia is a fed now. All their tech is suspect. And thus, Excommunicado as far as I'm concerned.

Also known as the Australian housing market