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Premium: This is The Hater's Guide To NVIDIA: A 14k word guide to how NVIDIA makes its money, how millions of Blackwell GPUs have been sold with nowhere for them to be installed, and how NVIDIA's future relies on companies raising hundreds of billions in debt. www.wheresyoured.at/the-haters-g...

NVIDIA's story is insane. Data centers take years to build, cost hundreds of millions of dollars in construction, labor and permitting, and require massive amounts of power, and *to this day* we still lack a complete understanding of what they cost to run. www.wheresyoured.at/the-haters-g...

Every year, NVIDIA makes a new GPU that's more power hungry (requiring even more power + data centers) and even more expensive, to the point that this company can no longer rely on customers cash flow. NVIDIA is fueled by private debt that must eventually run out. www.wheresyoured.at/the-haters-g...

A dirty little secret of the AI boom is that it appears everybody loses money on buying AI GPUs, as the incredible upfront costs (billions) put every data center in a deep, dark hole - and because GPUs are so power-hungry, it's difficult to make any margin at all. www.wheresyoured.at/the-haters-g...

GPUs are expensive to install, expensive to run...and the AI services that run on them *don't make much money from consumers* and lose incredible amounts of money due to the inconsistent and hard-to-predict costs of LLMs. There's no fixing this problem. www.wheresyoured.at/the-haters-g...

NVIDIA has sold over $200 billion in GPUs to companies building AI services that do not make money and have no path to profitability. The expensive, hard-to-gauge costs of LLMs combined with the burdensome costs of GPUs spell disaster. www.wheresyoured.at/the-haters-g...

Yet what worries me the most is that NVIDIA claimed to have "shipped 6 million Blackwell GPUs" in the last year. That's 6GW to 12GW of IT load capacity - the data centers do not exist, there is not enough space, there is not enough power. Where are the GPUs? www.wheresyoured.at/the-haters-g...

NVIDIA CEO Jensen Huang claims there are orders for 20 million Blackwell and Vera Rubin GPUs. Blackwell data centers take 2.5 years and $40bn-$50bn a gigawatt. Why are there so many more orders than there are data centers that can be built? Where are the GPUs? www.wheresyoured.at/the-haters-g...

There is only one company experiencing an AI boom - NVIDIA. Nobody else is making profits, or even good revenues. Why are companies still buying GPUs? Has Jensen Huang bullied everybody into preordering for capacity that's years from completion? www.wheresyoured.at/the-haters-g...

While NVIDIA seems to be doing really well, there are also a few concerning signs - accounts receivable (stuff it has yet to be paid for yet) is growing, along with inventory, suggesting generous payment terms that could go sideways in an economic panic. www.wheresyoured.at/the-haters-g...

There is no longer enough real cash to fuel NVIDIA's GPU sales, meaning that its future selling AI GPUs is completely tied to whether private equity is willing to bankroll it. Millions of Blackwell GPUs sit unused. Why would anybody buy more? www.wheresyoured.at/the-haters-g...

Does anybody remember how Sun Microsystems (SUNW) died? They sold SparcServers (&Solaris) in the dot-com boom. Thousands of VC funded startups buying SparcServers. Hugh revenue! stock soaring 10x in a year.

And then those dot-coms made no revenue... You might think: no problem SUNW sold all that HW, it was rich! Except: all those thousands of servers were to be liquidated on the resale market. Sun could not sell a *new* server for next 2 years. The company collapsed and was sold ... to Oracle.