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Posted by tolugenius 13 hours ago

Nvidia is the central bank of AI(www.economist.com)
https://archive.ph/kt50V
420 points | 289 commentspage 2
anthonybourdain 13 hours ago|
Okay, but at some point these investments need to start turning profits; the financing NVDA has arranged is temporary, and private credit needs returns at some point. The overinvestment in AI will lead to a downturn in the capital cycle.
jskdkdkdkf 12 hours ago|
[dead]
cmiles8 11 hours ago||
Because vendor financing in tech to keep a bubble going never ended badly.

Sadly it seems like some haven’t watched the end of the last movie on this subject.

taurath 7 hours ago|
It’s Different This Time(tm)
pwillia7 13 hours ago||
Should there be a LIBOR for 1GB VRAM set each morning?
Havoc 12 hours ago||
https://www.dramexchange.com/
morninglight 11 hours ago|||
Considering that LIBOR was discontinued in 2023 after a scandal of manipulation and fraud, YES! It's back to the future.
quickthrowman 12 hours ago||
CME is launching futures contracts for GPU compute: https://www.cmegroup.com/markets/energy/power/compute-future...
vkaku 12 hours ago||
Market correction will happen. Banks go down and close during recessions. Hope these people are wise enough to see through these effects.
anana_ 10 hours ago||
I'm curious what the actual rate of replacement/useful life of these GPUs running AI inference 24/7 is.

If these cards burn out in less than the ~5 years of depreciation that accounting puts them at, well then there will be problems.

jeremyjh 9 hours ago|
Quite a lot better than people originally thought. There is a LOT of demand for 5+ year old Ampere on the secondary market, and hyperscalers are still holding on to many of them since they can’t acquire new compute fast enough.

https://www.cnbc.com/video/2026/08/24/making-old-gpus-new-ag...

gz5 11 hours ago||
Interesting juxtaposition with Dario's/Anthropic's 'we must pace the frontier' missive today
password54321 11 hours ago|
If you read between the lines, it was mostly about China.
SleightOfHand 10 hours ago||
More like investors/AWS right?

Funding companies under the condition that they use their infra.

Also called: Buying customers.

I thought a central bank would be like: China is the world's largest official creditor and holds the highest foreign exchange reserves.

That's what makes you a naturally forming central bank.

amelius 13 hours ago||
And what is TSMC in this analogy?
JumpCrisscross 12 hours ago||
> And what is TSMC in this analogy?

The mint?

itsalwaysgood 13 hours ago|||
A platform: aka the foundation under the bank.

The material cement that allows chips to exist above it.

And the platform is made of time: ours.

amelius 12 hours ago|||
If TSMC is a platform, then why doesn't it have an App Store?
jubilanti 12 hours ago||
They do, you only get access to it if you're comissioning chips.
overcast 13 hours ago|||
ASML is the foundation. Without them, none of this would exist.
petcat 12 hours ago||
I think we can go even further and say that IBM, Zeiss, several Japanese companies, and even the US Department of Energy are the actual foundation since ASML is largely just an integrator of many different technologies they license from elsewhere.
overcast 8 hours ago|||
We can go even further, all of the mining companies! Or even further, and the dead stars that exploded!
MachineMan 10 hours ago|||
“Our age of silicon is collapsing” - Christopher Nolan
tccole 13 hours ago|||
Idk… government bonds or something?
bigyikes 13 hours ago|||
What’s upstream of the central bank? …Congress?
aeonik 13 hours ago|||
The currency press operator and manufacturer.
creativeSlumber 13 hours ago||
do they lend money to their customers to buy their own chips?
Founderarcstone 6 hours ago||
yes, and Jensen is the fed char!
timedude 10 hours ago|
Being the central bank of anything is certainly not a compliment. I'd take it as an insult
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