Nvidia to bet the company on OpenAI⁈
A couple of years ago I posted here about how what was going on in AI looked like the vendor financing of the telecom boom, which is now popularized as "circular financing." It hasn't concerned me until now because a vendor such as Nvidia might put in $x billion, but the customer would lever that up to by a multiple of that back from the vendor.
However, the WSJ is reporting that Nvidia is in Talks With OpenAI to Guarantee $250 Billion Financing for Data Center, staking its entire balance sheet. This story about hidden liability comes after Nikkei's report on massive off-balance-sheet financing in the industry. Backstopping OpenAI to this degree will not end well.
