Jensen Huang Oopsie

...Known for his A.I. evangelism and his black leather jackets, Huang, along with Elon Musk and Mark Zuckerberg, has led the trend of tech billionaires dressing like rock stars. On trips to Asia and Europe, he’s sometimes been mobbed by fans—a phenomenon that became known as Jensen-mania. His celebrity has rested on the foundational role that Nvidia plays in the A.I. ecosystem, where its high-powered microchips are used to train and run large language models like ChatGPT and Claude. A single Nvidia G.P.U. (graphics-processing unit) can cost more than fifty thousand dollars, and some big data centers employ tens of thousands of them. In the past few years, as the great A.I. build-out has proceeded, the demand for Nvidia’s products has greatly exceeded the supply, enabling the company to raise prices and generate vast profits. In the quarter that ended in July, it made nearly sixty billion dollars on revenues of ninety-six billion—a margin that loan sharks would envy…

…Nvidia’s grip on the A.I. industry, which earlier this year propelled its market valuation to $5.5 trillion, could gradually become less tight. Right now, though, it would be folly to understate the company’s role in building and financing the A.I. infrastructure that already exists or is under development. As well as supplying many of the chips that A.I. data centers rely on, Nvidia has, according to one tally, provided three hundred billion dollars in financial support, including loans and credit guarantees, to the customers that bought these products. On Wall Street, there is intense debate about the soundness of these circular-financing arrangements; one thing not in doubt is that an acute crisis at Nvidia could propagate across the A.I. sector, with consequences that are hard to predict. The betting on Wall Street is that the spy scandal won’t rise to those proportions, but it’s still unfolding.

 John Cassidy in The New Yorker.

 

Hmmm... Searching "AI Bubble" here on KHIT.