But even if those companies disappear overnight, and LLMs are blanket banned worldwide, aren’t they (pun intended) still in the green?
Their stock may drop, and they lose those investments, but at the end of the day they sold hardware and made a shit ton of cash, more than what they loaned out. And they end up where they were before the AI Bro Bubble.
But even if those companies disappear overnight, and LLMs are blanket banned worldwide, aren’t they (pun intended) still in the green?
No, because they don’t actually have a giant bag of money.
They invest in companies who buy their product. But that product hasn’t actually been made yet. Nvidia is writing it down as sale because the contract was signed, but no exchange was made.
So it’s like me giving you 10 bucks to buy 10 bucks off product from me in two years in return for a few percent of your profit.
However, if you go bankrupt between now and actually buying my product, I will be down 10 bucks and my share of the profit.
But even if those companies disappear overnight, and LLMs are blanket banned worldwide, aren’t they (pun intended) still in the green?
Their stock may drop, and they lose those investments, but at the end of the day they sold hardware and made a shit ton of cash, more than what they loaned out. And they end up where they were before the AI Bro Bubble.
No, because they don’t actually have a giant bag of money.
They invest in companies who buy their product. But that product hasn’t actually been made yet. Nvidia is writing it down as sale because the contract was signed, but no exchange was made.
So it’s like me giving you 10 bucks to buy 10 bucks off product from me in two years in return for a few percent of your profit.
However, if you go bankrupt between now and actually buying my product, I will be down 10 bucks and my share of the profit.