Following the departure of now-former NVIDIA CEO, Jensen Huang, a new report by The Wall Street Journal (via Wccftech) has emerged alleging that NVIDIA artificially inflated the ongoing GPU and memory shortage by investing in AI startups that would go on to buy NVIDIA GPUs and build data centers....
I didn’t know they allegedly had more GPUs than they knew what to do with, which is what the report says. Up until now, the public knowledge has been that the AI bubble has been used to justify sketchy deals like circular financing in an attempt to chase the unlimited profits promised by the discovery of AGI. As though they had no trouble selling them, but wanted to sell them in a way that also cut them in on future AI advancements.
Now imagine the ai companies spending billions on compute that, so far, none of their clients know how to turn into cost savings. Questionable results, large volume, no appreciable business benefit.