You also have the circular investment. NVIDIA puts money into OpenAI. It uses that money to buy computing power from Oracle, who then fills its datacenters with hardware from NVIDIA. Everybody's valuation rises.

Edit: valuation, not validation

[–] hemko@lemmy.dbzer0.com 1 points 3 weeks ago

Insert 2 economists eating shit joke

[–] Viking_Hippie@lemmy.dbzer0.com 1 points 3 weeks ago (1 children)

AMD too?

So, assuming that Intel is also on the wrong side of history as usual (and that their cards are actually good for gaming, of which I'm not convinced) , you literally can't buy a decent gaming GPU without paying into the AI nonsense?

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[–] MonkderVierte@lemmy.zip 2 points 3 weeks ago* (last edited 3 weeks ago)

Look, the recent CPU lineup had AI in its name, has dedicated cores in it. Because Windows wants to do AI things or whatever.

[–] mcv@lemmy.zip 1 points 3 weeks ago (1 children)

Isn't this basically a kind of insider trading? They wouldn't be allowed to buy that stock, knowing that this deal is about to happen, but receiving it as part of the deal is okay? That doesn't feel right to me.

[–] genfood@feddit.org 1 points 3 weeks ago

Nah, they are rich so it should be fine.

[–] ideonek@piefed.social 1 points 3 weeks ago (1 children)

Is this really what happen?

[–] Goodeye8@piefed.social 1 points 3 weeks ago (2 children)

Pretty much. OpenAI will "give" AMD 78bln for 10% of the stock and the chips openAI actually wants. This whole ordeal has been publicly paraded like OpenAI and AMD partnering up, which has already pumped up AMD stock price by 45%. Thus openAI will eventually get their 78bln (which they actually never had in the first place) back in AMD stock.

So who actually pays the 78bln? The simple answer is AMD stock holders, currently the ones who have bought the stock after the announcement and later the ones who bought it before it crashed. The more complex answer is that the stock market at this point is just a speculative mess where numbers are made up because the price isn't dictated by what the company is currently capable of doing but rather what the company potentially could be doing in the future. Who knows who is actually paying for it because AMD stocks will get used elsewhere (for example as collateral in a loan) and the economic growth with absorb the costs. In short, we might as well imagine nobody paid for the chips.

In short, brace for another "once in a lifetime" economic crash.

[–] Rivalarrival@lemmy.today 1 points 3 weeks ago (1 children)

The more complex answer is that the stock market at this point is just a speculative mess where numbers are made up because the price isn't dictated by what the company is currently capable of doing but rather what the company potentially could be doing in thue future.

You seem to be under the impression it was ever anything else.

[–] Goodeye8@piefed.social 1 points 3 weeks ago

I'm already too cynical, let me be naive about some things.

[–] snooggums@piefed.world 1 points 3 weeks ago

The more complex answer is that the stock market at this point is just a speculative mess where numbers are made up because the price isn't dictated by what the company is currently capable of doing but rather what the company potentially could be doing in the future

The stock market has been a speculative mess where the numbers are made up during my entire lifetime.

[–] llama@lemmy.zip 1 points 3 weeks ago (1 children)

Or you know, buy the chips fair and square, buy the stock fair and square, provide a service that's worth something, and make profit from both transactions.

[–] Dragonstaff@leminal.space 1 points 3 weeks ago

It is way more work to provide value than it is to bribe the regulators to agree that you provided value.