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Is AI Profitable Yet? (isaiprofitable.com)

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[-] Davel23@fedia.io 5 points 4 hours ago

Yeah, but how much of that is the money that nVidia "invested" in other companies so they can buy nVidia hardware?

[-] Thorry@feddit.org 6 points 3 hours ago

Even the deals that might seem perfectly fine on the surface. Nvidia sells some hardware and the customer paid for them. However when we zoom in it's not that they actually paid for them, it's that payment is due sometime in the future. And it isn't that the hardware is actually delivered, it's what Nvidia calls buy-and-hold. This is a scheme where Nvidia holds on to the hardware till the customer has a data center ready to put them in. However it is since become clear that those data centers are never being built. And Nvidia has sold more than they have manufactured. And the customer doesn't have the funds to pay them. So on paper it's all fine and everyone is doing well, in reality it's all just a huge bubble.

And yes this is super illegal, but in the Trump era it's like the Wild West out there, utter lawlessness.

[-] brucethemoose@lemmy.world 1 points 4 hours ago* (last edited 4 hours ago)

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.

this post was submitted on 29 May 2026
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