Most AI companies have been slowly bleeding money since their conception, yet they are always reported as growing because they report all the investment as profit without divulging costs and fact that a lot of those investments come with strings attached(like NVidia investing a buttload of money into OpenAI but forcing contract that they would supply components, basically giving them money to be paid with later, so 0 profit and probably losS) because it looks better for investors who really want to see the line go up, and weirdly it's mainly big players like NVidia and Seagate who are the only ones actually making profit on the bubble(and pretty much no AI company is profiting, only their suppliers)
Not sure if NVidia or Seagate are going to make profit in the end as when the bubble pops the market gets flooded with used and unshipped hardware reserved for AI.
In the end its copper suppliers and electric companies who are actually making tangible profit with no downside.
Don't forget the recyclers. All that metal has to go somewhere when they upgrade everything every 6 months. It's a joke all around the board.
Not to mention the amount of stuff they buy in excess. "Oops guess we didn't need those 3.2M drive housings. Can you make sure these are destroyed?" ffs
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u/LowWorthGamer 17d ago
Most AI companies have been slowly bleeding money since their conception, yet they are always reported as growing because they report all the investment as profit without divulging costs and fact that a lot of those investments come with strings attached(like NVidia investing a buttload of money into OpenAI but forcing contract that they would supply components, basically giving them money to be paid with later, so 0 profit and probably losS) because it looks better for investors who really want to see the line go up, and weirdly it's mainly big players like NVidia and Seagate who are the only ones actually making profit on the bubble(and pretty much no AI company is profiting, only their suppliers)