Besides the overvaluation, there’s rumors that are getting quite loud regarding the circular accounting scandal between Nvidia, open ai, Oracle, Coreweave, & Microsoft
all buying each other’s pro...
Not only does it show up as revenue, but it also gets added to the balance sheet as an investment asset. The loop is insane.
Nvidia takes out a loan against the value of its enterprise. New money is created through the lending process.
Nvidia then invests that newly created money into OpenAI and records the investment as an asset on its books.
OpenAI uses the capital Nvidia provided to purchase Nvidia chips.
Nvidia, in turn, records those chip purchases as revenue.
The same pool of newly created money simultaneously supports an investment asset on Nvidia's balance sheet and generates revenue through the sale of its products.
It's the latest evolution of QE. We all knew the money printer would eventually get turned on, but we didn't know what the vehicle for the printing would be... Now we do.
Nvidia takes out a loan against the value of its enterprise. New money is created through the lending process.
Nvidia then invests that newly created money into OpenAI and records the investment as an asset on its books.
OpenAI uses the capital Nvidia provided to purchase Nvidia chips.
Nvidia, in turn, records those chip purchases as revenue.
The same pool of newly created money simultaneously supports an investment asset on Nvidia's balance sheet and generates revenue through the sale of its products.
It's the latest evolution of QE. We all knew the money printer would eventually get turned on, but we didn't know what the vehicle for the printing would be... Now we do.