Comment by onion2k
19 days ago
Nvidia invests $100bn in OpenAI, who buy $100bn of Nvidia chips, who invest the $100bn revenue in OpenAI, who buy $100bn in Nvidia chips, and round it goes. That's an easy $600bn increase in tech industry revenue right there.
The classic "Where's the $20 you owe me?" sketch: https://www.youtube.com/watch?v=s-ycvJC-qIQ
am i wrong to think that this sketch isn't at all applicable (besides the surface level joke of money being passed around) to the ai bubble or ""modern banking"" as mentioned in the youtube comments? i keep seeing it referenced like it is an explanation of some crazy conspiracy thing, so i don't know if i just don't get it.
No it's actually perfect.
GDP measures exchange of money with the assumption that this is a proxy for actual economic output... except cases like this where monetary exchanges like this which accomplish nothing.
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https://news.ycombinator.com/item?id=37395566
An important thing that this joke misses is that both economists now also owe federal income tax and social security tax.
If they routed the payments through a shell company it would be written off as business entertainment expenses.
Were the payments considered income?
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The replies explain all there is to explain in that example. If each economist thinks that eating shit is worth $100 then, well, that's what it's worth.
It is fascinating that someone can tell an obvious joke with an obvious point, where the characters themselves spell out what’s wrong, and yet we can be certain someone will genuinely believe and defend that “no no, actually eating a random pile of shit you found on the floor makes sense and is worth it”.
Has it occurred to you, especially since one of the economists in the joke admits they feel they ate shit for nothing, that they actually do not feel the exercise was worth it? Have you never spent money on something, thinking it would be worth it, then afterwards realised it was a waste of money? Have you also never taken a job and then realised “I didn’t charge enough for the trouble”?
I’m reminded of a bit of news I heard a while back, where one teenager challenged a friend to eat rat shit they found on the street. The eater died shortly after, because the poop contained rat poison. I doubt any of them found it worth it.
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Someone in management read and misunderstood "The Velocity of Money" (https://en.wikipedia.org/wiki/Velocity_of_money)?
Or understood way too well. I promise it isn't Altman that will be left destroyed or jobless if this crashes.
You're absolutely joking if you don't think when this goes to crap Microsoft won't hoover up more share of OpenAI.
I wouldn't be surprised if they're banking long-term on its failure and got in early so they had equity preference.
Mass layoffs and the wellness camp industry will easily account for $600+ billion a year in contracts, for at least a few years.
https://www.teenvogue.com/story/rfk-wellness-farms-us-disabi...
Smells like "Banco Master" (Brazil) scandal.
Either Nvidia eventually runs out of chips for OpenAI to buy or OpenAI runs out of equity Nvidia can buy.
The chips OPEN AI is buying don't even exist, they're hypothetical chips that will potentially exist at some point in the future.
Even future chips might run out. But I think OpenAI will run out of equity to sell first. Even tough they can print it, it gets dilluted.
investment is not revenue tho... this is equivalent to nvidia buying its own chips...
It is equivalent under scrutiny, but casually looking the books and seeing Nvida making a sale to Nvida sticks out like a sore thumb a lot more than Nvida making a sale to OpenAI. The latter is much more likely to pass as revenue.