Nvidia is Backing Out

Wait, can we talk about this? Wait,

wait, wait, wait, wait, wait, wait,

wait, wait, wait, wait. We gota talk

about this, bro. We gota talk about

this. Have you seen the drama? The

Jensen Wong Sam Alman drama, you know.

Okay, so a while back, Nvidia said,

"We're going to invest 100 bill 100b

into Open AI." You know, I made a video

on this. And then OpenAI is like, "We're

going to put a 100 billion into Oracle."

Actually, they said 500 billion or

something like that. They said we're

going to put, but anyway, the 100

billion 100b into Oracle to make data

centers. And then Oracle said, "We're

going to take $100 billion that you gave

us and buy GPUs." And that was the

circle jerk. That was the idea. But then

recently, Jensen Hong off the cuff goes,

"Hey, uh, that hundred billion we said

was really more of like a it wasn't a

hard commitment.

Like we're not, you know, we're not

stuck to that number. We're going to

give a lot of money to open a don't be,

don't get me wrong, but like a hundred

billion is like it's going to depend

on." So he said that and it caused, you

know, some downstream panic. This is not

a public company, so the valuation can

get hurt, but you know, it goes through.

Oracle stock went down because Oracle's

like suddenly looking like they're

[ __ ] hung out to dry. Oracle is

breaking ground on building data centers

right now with debt. They're using debt

to build them and they need to get paid

back by OpenAI who doesn't have the

money. So there's a bit of a problem.

There's a bit of panic. And so, uh,

behind the scenes, the drama kind of

escalates, but little parts leak out

into public. So, Open AAI to strike back

at Nvidia and let them know, hey, don't

[ __ ] with our money like this, starts

leaking press articles about how uh,

Nvidia GPUs aren't really that good

and how they need better stuff for AI.

Like, wait, look, open AI. Nvidia's

hundred billion dollar open AI deal has

seemingly vanished. market confidence

down after invested in materialized.

Okay. And then exclusive Open AI is

unsatisfied with some Nvidia chips and

are looking for alternatives.

So that that's shaky because they're

like, "Oh, we need so then then Jensen

denies OpenAI deal rumors. There's no

drama."

And then yeah, he went on Jim Kramer and

he just [ __ ] glazed Open AI for like

25 minutes. I watched it's audio only

and it's just him being he like talks

over Jim Kramer to be like, "Hey, by the

way, I just love Open AI just to be

clear."

So, like all these people are trying to

keep the [ __ ] the wheel turning, bro.

And then you see something like Nvidia,

again, there's a lot of these circulars,

you know, Nvidia invested money into

Coreeave, TRW, and Coree can't turn a

[ __ ] profit. They can't make any

money. So, they buy Nvidia chips, right?

So, it's circular demand here, but

Coreweave stock just cratered again.

Nvidia paid in at a certain value and

they cratered after that. So, there's a

lot of these circles starting to slow

down. I maintain I said this in the uh

the lemonade stand predictions the

beginning of the year. I stand by it. I

think Open AI by far the weakest link of

this whole [ __ ] sorted affair. They

are the dark beating heart of the

problem. They don't make any [ __ ]

money and they have so many promises.

The only thing that'll save it in actual

terms is not even AGI because that's not

close enough. Open AAI is going to do

ads this year. If ads are very

profitable, like very very like

extremely profitable, then there's a

chance this thing keeps going. That's

what it depends. It depends on how

profitable chat GPT ads are to keep this

to even keep it going, the idea of it

going. If they're not profitable,

cooked. They're like Twitter level. If

OpenAI is ads business the same size as

Twitter's, it's they're cooked. It's

it's there's no other way. They can't

they can't possibly. There's this is 100

billion, but there's $1.5 trillion in

commitments on things that are being

built on debt that have to be built now.

And they are just asking OpenAI for the

money and they don't have it. And yeah,

like again, in a world where like on

YouTube, if YouTube runs a lot of ads,

there's nowhere else you can really go.

But right now in the early days of uh

LLMs and AI, if Open AI has annoying

obtrusive ads, you can just leave. You

can go to Gemini, you can go to [ __ ]

Claude. You got a lot of opt You can go

to Kimmy. You can go to um EPS. You can

go to there's like a million

alternatives that are cheaper and won't

have ads. So, it's it's unlikely. I

mean, there's a Super Bowl ad we're

going to watch next week, but Anthropic

has a Super Bowl ad making fun of

OpenAI's ads. So, this has gotten pretty

messy, but you're getting the general

idea here. Let's watch one of the ads.

There's more. We'll just watch one.

We'll watch the anthropic ad cuz I think

it's relevant. I think it's relevant to

what's going on. We'll just watch one.

Hey, can I get a six-pack quickly?

>> Perfect. That is a clear and achievable

goal. Would you like me to tailor a

personalized workout plan?

>> Yes.

Perfect. Let me personalize this for

you. Let's start with your age, weight,

and height. Whenever you're ready.

>> 5'7, 23 years old, 140 lbs.

>> Got it. I'll create a plan that focuses

on aesthetic strength training. But

confidence isn't just built in the gym.

Tricep Boost Max, the insoles that add

one vertical inch of height and help

short kings stand tall.

>> What? Use code hidemaxing 10 for big

discounts.

>> So they're doing all these ads making

fun of you know how Chad GPT is and

again Chad GPT and and Sam Alman worth

noting said this.

>> I kind of think of ads as like a last

resort for us for a business model. Um I

would do it if it meant that was the

only way to get everybody on the world

in the world like access to great

services. But if we can find something

that doesn't do that I'd prefer that.

Yeah, they couldn't.

Just flash forward. This isn't even that

long ago. This is not even that long

ago. They couldn't. They tried a bunch

of crap. They tried that uh the short

form Sora video. They tried They tried a

bunch of things. None of it made any

money. And now they are break glass in

case of emergency. Last minute, last

chance. Holy [ __ ] We're going to roll

ads out or we are screwed financially.

So, we'll see, bro. We'll [ __ ] see.

But this is their last thing. And I

think the clawed ads, the Gemini is

going to do the same thing. And so Sam

Alman in a rage, don't say I'm mad,

don't print that I'm mad, put out a

[ __ ] typers today about the ad.

First part, the good part of the ads,

they're funny. And I laughed. But I

wonder why Enthropic would go something

so clearly dishonest. Our most important

principle for ads is we won't do exactly

this. We'd obviously never run ads the

way they're like, you know, it's like I

guess it's on brand for they're like

double speak to use a set of adorical

except when they're not real but a super

adjected. It just comes off as so it's

you know what I'm saying? I'm not owned.

Don't write that I was owned. He's mad

dude. So I'm just telling you this

remind it's like whenever um that guy

that dude you guys remember when Sam was

on that podcast and there was the guy

literally glazing him for 45 minutes and

he goes hey just one question though. I

mean, like, I love OpenAI. You guys are

killing it. I just have one question.

Um, how are you guys going to pay that

1.5 trillion you owe? I mean, I'm sure

you can, but I just like And then Sam

was like, "If you want to sell your

[ __ ] shares, I'll find you a buyer.

You snapped, bro." Uh, so I don't know.

I'm just uh I just I I clearly and again

I'm not you know most chatters are like

hand to God praying that open AI crashes

and then AI disappears and they never

see it again. That's not going to

happen. Zero chance of that happening.

It's a transformative technology. It's

going to have big impacts our whole

lives. But it is a financial bubble and

open AI is at the heart of it and uh and

they don't make enough money to what

they've [ __ ] they've put their

promises to. What do you think will

happen once the ad bubble does pop? I

mean, I think it'll be similar to the

[ __ ] train bubble, the internet

bubble, anything, you know, anything any

any major bubble, which is that most of

the companies will wipe out. There'll be

a 90% crash in them. Uh, a few strong

players will survive and then they'll

probably make a ton of money later on as

it as the kinks get figured out and it

will be impactful. Maybe this time

around we'll have a massive government

funded OpenAI bailout. I'm praying to

God that doesn't happen, but maybe we

have that. Who's selling the shovels in

that analogy? uh it's it's the shovels

change. So like in the beginning of the

internet buildout they thought the most

important thing the key demand driver

the the the differentiator would be like

fiber optic cables laid and so Cisco was

the the darling of the early internet

made a ton of money and then as the

internet developed more they realized

that that wasn't really a differentiator

and all the money was made on the

application layer you know like Google

and uh social media and that's where the

[ __ ] real money that's the

differentiator it wasn't the the the

rails but it is seeming to me in the

shorter term that the differentiator

this time around is like logistics

energy like the ability to actually like

cool power and build data centers not

just make the GPUs you can buy the GPUs

it's like how do you how do you get a

gigantic data center with the land build

it fund it power it that's what the

world is turning into and everyone's

starting to realizing it's a rush for

like rare earth minerals for things like

[ __ ] silver for energy, for oil, for

nuclear power, for power. That's the

differentiator right now in this next

wave of this buildout. The construction

guys who are building data centers are

becoming millionaires. High key, dude.

Yeah. This is the this is like the big

gold rush in private sector employment

in America right now. Everything else is

kind of cooked. People who are doing

electricity wiring for data centers,

people who are uh construction, people

who are anything that's doing that,

people are traveling all over the

country to do it. People are traveling

cross country leaving their family to do

yeah plumbing, HVAC, yeah, all that

stuff for data centers cuz they're

building like crazy and they pay a lot

of money and they're making good money.

But, you know, there's a good chance

that those jobs are temporary, right?

They they only exist while the thing's

being built. Definitely been a trade

trades rush.