A financial crisis is brewing around Nvidia, which could burst the AI bubble. In the wake of Jensen Huang's unexpected resignation, journalists and analysts have turned their attention to how the rapid growth of the AI industry is actually funded.
An interesting plan has emerged: Nvidia not only sells its chips to companies that build data centers, but also invests money in some of these companies, helping them obtain financing and sometimes promising that it will pay for the computing power itself if there are no buyers for it.
Imagine that you manufacture expensive machines. You help other companies build factories, sell them your machines and promise to pay for the labor of those factories if they don't find customers. Sales of machines are growing, factories are being built, investors are satisfied. But the question arises: how big is the real demand for machines if the manufacturer has to support it himself?