alt Hacker NewsI would like to see the numbers.
If Nvidia sells hardware for $100B with 75% cross margin, and provides $50 billion in backstop for that same hardware, it would be still be nicely profitable deal ($25B) if the backstop capacity would be a total write-off recovering $0. Reselling that capacity in some large discount below already low backstop price would increase the profits.
It's all those pension funds, sovereign wealth funds and Softbank getting into that $500 billion deal that will be hurt.
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Businesses aim to make the most profit possible with their resources. If they can make a 25% margin that is good, but if they can turn around sell thr same thing for a 50% margin, that is much better.
Basically what i am saying is maybe there is a better buyer than openai.
Pretty much, I have said it for a while now, Softbank and Oracle are the ones I would be worried about. Both of them have put their companies wealth behind this, if it goes down so will they.
Others have played it fairly smart in terms of insulating potential issues.