New details reveal that former NVIDIA CEO Jensen Huang used circular financing to fund AI startups and absorb excess TSMC wafers and memory rather than letting GPU prices drop
From my understanding the article exaggerates whether there was a complete shortage but the wall street journal article does confirm the CFO warned about an avalanche of excess memory and wafers coming due to circular financing schemes. That, consumer-focuses exaggerations aside, is still huge.
It also implies much of the AI startups industry has been kept afloat by subsided computing credits which were a part of this circular funding scheme.
Doesnt help the wall street journal article is paywalled. I found other sources citing the wall street journal article which confirm that the CFO warned about an avalanche of over supply.
At the August meeting, Huang expressed concern that major cloud providers were exploring alternative chips while Nvidia faced an “avalanche” of commitments to purchase chip wafers and memory.
Those concerns followed a financing initiative involving Huang’s son-in-law, Nvidia Vice President Nico Caprez, who helped arrange financial guarantees for cloud providers and data-center developers purchasing Nvidia products.
From my understanding the article exaggerates whether there was a complete shortage but the wall street journal article does confirm the CFO warned about an avalanche of excess memory and wafers coming due to circular financing schemes. That, consumer-focuses exaggerations aside, is still huge.
It also implies much of the AI startups industry has been kept afloat by subsided computing credits which were a part of this circular funding scheme.
So it’s option 3: I can’t read
Doesnt help the wall street journal article is paywalled. I found other sources citing the wall street journal article which confirm that the CFO warned about an avalanche of over supply.
https://finance.yahoo.com/markets/stocks/articles/report-jensen-huang-belittled-nvidia-145318600.html