What don’t have nvidia able to do it for you rn?
Oh boy… TSMC getting in on the circular financing…? I may have to dump their stock.
Dump? If you’re convinced it’s about to take a tumble, aren’t you better to short it instead?
This is tiny. $26b overall is being added to Anthropic at IPO in a special deal to make IPO smaller. $500m to OpenAI is a drop in the bucket for what they need within next 3 months. It is $1b total, and a tiny fraction of TSMC cash. Also IPO can be a big bag transfer event, as the $26b is all unrestricted. Though bubble fucking a few months longer seems to always be the plan.
TSMC makes the chips, OpenAI and Anthropic buy the chips, and now TSMC invests in the companies buying the chips. Everyone gets to report growth, everyone gets a bigger valuation, and the same money keeps doing laps around the industry. The silicon is real. The demand signal is starting to look like a hall of mirrors.
Nvidia designs the chips that TSMC manufactures and sells to Supermicro to build servers to install in data centers owned by Coreweave and rented out to OpenAI.
You can mix and match different companies in each level, as very few are exclusive to one vendor/supplier/customer.
That money doing laps is serving the already wealthy, and isn’t being used to support people who actually need it.
Capitalism doing what it’s explicitly designed to do.
lol @ ai generating comment responses on lemmy
cadence is just a dead giveaway, try harder op (source: reading slop avg. 8-14 hours a day for the past year)
Steering the discourse by playing both sides of the narrative. It’s done for just about everything these days. We’re doomed.
$1bn? Hah, that’s like 2 days of opex.
Money tornado coming for your house, your computer and your pension
Isn’t $1B like not even that much for these companies, won’t they just burn it in a month or so?
Try a few days kek
it’s just a giant circle jerk
It is quite logical to invest in your big customers.
Not as a general rule, no. Not at all.
Businesses make profit selling to customers. Large customers typically give less profit as they negotiate cheaper contracts, at the benefit of being a reliable buyer. Investing the profit back into them makes little sense.
Do you see farmers invest in the supermarket chains that buy their produce? Mining companies investing in Chinese ore smelters? Battery producers investing in major electronics companies? Pottery companies invest in garden center chains?
Its really quite uncommon for companies to directly invest in their large customers.
Whats seen more typically is the reverse: big customers investing in their major suppliers, often to negotiate better pricing agreements or to guarantee supply contracts for their critical supply chain items.
The AI ouroborous is a very artificial industry structure - its just a bottomless moneypit that’s doing its best to hide that fact as long as possible, "come 2030 it’ll be ultra profitable bro, trust. In the meantime we’ll need the GDP of a large nation every year ty’.
It is the very essence of capitalism. Ever heard about “corporations”? Companies that unite long manufacturing chains (often multiply ones) under one command?
Rise together, die together.
