Comment Re:Clever (Score 4, Insightful) 44
Clever, because they know it is all monopoly money once the AI crash comes.
Not just once the crash comes, but this sort of thing will help cause the crash.
Cory Doctorow talked about some of it in a recent post that really helped me grok what I've been feeling about the inevitable AI bubble collapse.
The data-center buildout has genuinely absurd finances – there are data-center companies that are collateralizing their loans by staking their giant Nvidia GPUs as collateral. This is wild: there's pretty much nothing (apart from fresh-caught fish) that loses its value faster than silicon chips.
That barely scratches the surface of the funny accounting in the AI bubble. Microsoft "invests" in Openai by giving the company free access to its servers. Openai reports this as a ten billion dollar investment, then redeems these "tokens" at Microsoft's data-centers. Microsoft then books this as ten billion in revenue.
That's par for the course in AI, where it's normal for Nvidia to "invest" tens of billions in a data-center company, which then spends that investment buying Nvidia chips. It's the same chunk of money is being energetically passed back and forth between these closely related companies, all of which claim it as investment, as an asset, or as revenue (or all three).
AMD giving 10% of itself to OpenAI is almost entirely symbolic as OpenAI will turn around and "spend" that money on something like GPU hardware, probably AMD products. AMD is just paying itself via OpenAI and both companies will book it as revenue to try and obscure the colossal losses on AI spending.
It's all monopoly money laundering, and it's going to crash hard.