AI Good and Bad
- Thread starter bigredfish
- Start date
I understand very little but it sounds like Nvidia is selling GPUs to clients to warehouse
Enron
Bernie Madoff
Enron
Bernie Madoff
Last edited:
Gotta pump it before the collapse
The co-founder of OpenAI who turned down Meta and built a company worth $30 billion in less than a year... is issuing a terrifying warning to college graduates!
Ilya Sutskever (AI genius and AlexNet engineer) stood on the University of Toronto stage to deliver one of the most important speeches of our era:
️ "The day will come when AI does everything we can do.. not some things, but all of them!"
The co-founder of OpenAI who turned down Meta and built a company worth $30 billion in less than a year... is issuing a terrifying warning to college graduates!
Ilya Sutskever (AI genius and AlexNet engineer) stood on the University of Toronto stage to deliver one of the most important speeches of our era:
️ "The day will come when AI does everything we can do.. not some things, but all of them!"
mat200
IPCT Contributor
- Jan 17, 2017
- 19,730
- 32,907
Something bad is starting to happen...
This video examines the financial health and market perception of CoreWeave, a company that rents out Nvidia GPUs to AI firms. The company has raised over $35 billion, relying on a complex debt structure involving "boxes"—special purpose vehicles where contracts, hardware, and data centers are pooled to manage cash flow (2:25 - 3:06).
Key takeaways from the discussion:
The panel suggests that whether CoreWeave succeeds depends on maintaining its "payback period" (the time it takes for a machine to cover its cost) and managing its exposure to variable interest rates as it continues to grow (17:30 - 18:06, 19:10 - 19:25).
This video examines the financial health and market perception of CoreWeave, a company that rents out Nvidia GPUs to AI firms. The company has raised over $35 billion, relying on a complex debt structure involving "boxes"—special purpose vehicles where contracts, hardware, and data centers are pooled to manage cash flow (2:25 - 3:06).
Key takeaways from the discussion:
- The "Yikes" moment: When Elon Musk reacted to a chart showing CoreWeave bond yields hitting 15%, the company's stock experienced a significant drop (0:02 - 0:23).
- Asset-backed debt vs. Unsecured bonds: While the company's box loans are secured by GPU contracts and hardware (3:36 - 4:03), the market's concern stems from the pricing of its unsecured bonds. When the price of these bonds drops, their yield increases, reflecting higher perceived risk (4:26 - 5:15).
- The role of CDS (Credit Default Swaps): Chamath Palihapitiya notes that the "smart money" uses these derivatives as insurance against default. A spike in the cost of this insurance suggested to some traders a high probability of default, leading to a negative feedback loop of fear (6:13 - 7:07, 9:50 - 10:43).
- Competitive and structural risks: Ben Horowitz compares the current GPU land-grab to the bandwidth bubble of 1999, warning that a sharp drop in market prices for computing could leave companies with heavy debt and outdated assets (12:45 - 13:28). Conversely, others argue that AI demand is fundamentally different because, unlike bandwidth in the 90s, there is a severe shortage of available chips (13:35 - 13:43).
The panel suggests that whether CoreWeave succeeds depends on maintaining its "payback period" (the time it takes for a machine to cover its cost) and managing its exposure to variable interest rates as it continues to grow (17:30 - 18:06, 19:10 - 19:25).
