Nvidia is a Scam! MASSIVE FRAUD?!?!?

here's some of the Nvidia fud uh that's

circulating Nvidia the red flags let's

see what we got all right

I've not read this yet so we're gonna

look at it together

uh okay

Market Chronicles today we'll be taking

a closer look at Nvidia for transparency

sake I have no trans uh trading position

on Nvidia fine I do

I'm in the process of setting up a

private feed I don't care

okay where is it okay over the extended

holiday weekend one particular story has

gained momentum on x

Nvidia GPU demand as you're probably

aware nvidia's performance has eclipsed

nearly all other assets

262 percent year-to-date growth and then

I like how they give you this this trend

line implying that therefore it's

overvalued uh even though you have to

factor in this insane AI demand now from

software companies which there is

potentially an asterisk for but anyway

so what do we have here many analysts

attribute this meteoric rise to the

surgeon AI demand fueled by the interest

in generative AI majority GPT whatever

with industry giants like Stan

druckenmiller adding Nvidia shares it's

no surprise many followers who fine Buzz

around it okay

uh okay who's this Samantha I asked a

couple weeks ago after Q2 results what

is this about that 70 17 video growth

are we sure it's real any concerns on

how the sausage was made I ask because

you did financial analysis on smci plus

Nvidia lowering trade is always a good

idea so I'm curious all right let's see

her concerns were specifically about the

data center Revenue growth second

quarter Revenue growth was a record 10.3

billion dollars up 141 from the previous

quarter 171 from a year ago before

delving deeper it's important to note

that Samantha has advised her clients to

short Nvidia indicating she has a vested

interest in this matter nonetheless her

question sparked skepticism some very

interesting facts started to emerge

starting with a 2.3 billion dollar line

of credit granted to a company called

core weave a client call a client of

Nvidia which happened to be the exact

data center beat the plot thickens I

mean that's not really a plot but okay

core weave took a 2.3 billion dollar

loan collateralized by 2.3 billion

dollars of Nvidia h100 chips

Blackstone

BlackRock and magnetard bought 2.3

billion dollars of Nvidia trips

at chips okay so I'm having a trouble

understanding why this is so bad right

now let me understand this core weave

loan though

core we've owned 2.3 million dollars

okay okay there's an August 3rd reuter

story on this

let's find out

wait hold on one sec they're going to

school

love it

all right

okay

I had to say goodbye to the kids okay so

August 3rd specialized cloud provider

core weave has raised 2.3 billion

dollars in a debt facility led by

magnetar uh capital and Blackstone

collateralized by Nvidia chips with the

funds to be used to expand Rising AI

workload

okay that in itself is not sus

I mean core weave is a company that

leases out uh h100 usage so you borrow

2.3 million dollars and you dump it into

buying chips

okay so so far

I don't see that as bad

other lenders in the facility include

Coupe digital Bridge BlackRock Pimco

Carlisle whatever whatever the outsize

loan also marks the growing Market in

private asset-based financing that's

fine we negotiated with them to find a

schedule for collateral depreciation

schedule payoff schedule CEO at core

weave for us to borrow money against the

asset base was a very cost effective way

to access the debt markets Nvidia back

core weave has seen a boost in

generative AI the company has unique

access to Nvidia chips that are in short

supply blah blah blah okay all right

fine

good why is this credit line worth

paying attention to exactly because

BlackRock is the second largest

shareholder of Nvidia

again

so what so far like I look at this I'm

like if I own a bunch of Nvidia and

somebody's coming to me going hey like

you can give us a loan backed by these

Nvidia chips

and that'll increase Revenue at your

stock then you're gonna win on the

interest and potentially stock movement

like

that sounds reasonable that doesn't

sound sus that sounds smart okay

the shares were required at an average

price of 244. well fine who cares okay

so Samantha quickly connected the DOT s

okay core weave backed by Nvidia buys

2.3 billion dollars in video chips with

a 2.3 billion line of credit Finance by

BlackRock using 2.3 billion dollars in

video chips it's collateral BlackRock

owns 182 million shares worth of Nvidia

Nvidia claims a 2.3 billion dollar data

center B

that gaps up Nvidia 11 and after hours

okay

so it is that what everyone says Now by

like a company still bought the chips so

they borrowed money by somebody who had

a vested interest in video

they spent the money because they expect

to make money with it unless core Weave

unless core weave is willing to go

bankrupt

by you know borrowing this stuff like

the only way this is us so far is if

core weave is a fraud right like if core

weave is is buying these chips and then

they're putting them in a garage and not

using them

uh then that's fraud right that would be

fraud

but short of that

sounds normal to me

okay

notable aspect here is the use of gpus

is collateral why is that notable

given the typical deflationary nature of

tech

so you can blend against anything you

you realize that there are plenty of

non-asset-backed loans there are these

things called debentures which is

basically lending to a company based

solely on the full faith and credit of

the company

there is literally no collateral zero

collateral

companies borrow all the time without

collateral humans you and I borrow all

the time without collateral credit cards

personal loans whatever

and so now a very high in demand chip

the h100 which even if it's worth zero

in five years still has collateral

between certainly now and next year and

probably the year after that there's

still some residual value to it right so

BlackRock has more security than zero

substantially more security than zero

hell they could probably foreclose on

core weave today and sell those chips

for more than core we've paid for it

this is fantastic collateral today

so that's not sus especially since

companies borrow all the time without

collateral

it's almost certain the collateralized

asset technology will become obsolete in

two or three years it is not almost

certain okay look at the a100 the a100

uh GPU still has a lot of value today

when did the a100 come out let me see uh

I think it was 2021 is when the a100

came out the a100 wow the a100 came out

May 14 2020 okay so the a100 GPU price

so the a100 is three years old

cost ten thousand dollars a chip today

hold on I think you can actually get an

a100 on Amazon now 6 700 bucks okay so

maybe some depreciation so it looks like

maybe it originally cost closer to 10.

now it's down to 6 700. but wait a

minute this person just said

that it's almost certain that the

collateralized asset technology will

become obsolete in two to three years

the a100 is three years old

and still holds substantial value

so what are you smoking dude

I mean look put a salty article together

that goes viral and you get more

subscribers what whatever if you want to

if you can lie to people and Stitch crap

together whatever like I'm all for

exciting titles you all know that I got

I gotta I like my exciting titles okay

but at least in my videos my goal is to

provide realism Truth uh as much fact as

possible uh this is bullcrap if this is

the argument again this is my first time

reading it okay so maybe there's more

maybe there's more to this but so far

these arguments are weak

uh this strategy brings okay all right

Kevin wasn't in 2000 Cisco did the same

thing well I did exist in 2000. uh I

wasn't an investor in fiscal in 2000 but

it did exist in 2000 but that doesn't

matter how old I was in 2000 doesn't

matter what you're alleging is that well

Cisco also uh basically had other

companies Finance their product or

borrow for their product

Cisco

you have to remember first of all where

we were in 2000 and what Cisco is Cisco

is an Enterprise internet connectivity

product and service so you're talking

about high-speed modems wireless access

points uh uh uh high speed voice over IP

in 2000

actually probably still in like 2002

2003 2004 we were still using dial up

bro

Cisco was selling high-speed modems and

products in a dial-up era

okay

they were way ahead of their time

at least we can use this technology

today

whatever man whatever man

uh this strategy brings in mind the

downfall of FTX what trash dude what

trash what utter trash so so let me let

me understand this FTX who fooled

celebrities influencers the Super Bowl

was about to sign a contract with Taylor

Swift Taylor Swift was gonna get fooled

fooled everybody because they're a fraud

because they're Liars because they were

legit a scam

that company you're saying is similar to

Nvidia because Nvidia sold chips to a

company that is licensing server usage

of h100s where you can go to core weave

right now and again maybe that company's

a fraud I don't know I'm not alleging

that it's not I'm just saying you're

making a very very strong allegation

here and I think without real proper

evidence here uh but you go to core

weave and you go to their products and

solutions or whatever this is a company

that's licensing to you hours worth of

uh basically Cloud architecture right so

you could go to them and go hey I want

to use the h100 what is it going to cost

me I don't know uh here h100 is going to

cost you 4.76 cents per hour bro they go

spend let's say 30 grand okay so they

spend 30 grand on uh an h100

okay now let's assume they get 22 hours

I'm taking out about 10 let's assume

they get 22 hours of upkeep on this uh

or or up time on the h100 that they're

gonna spend thirty thousand dollars on

and uh we're gonna go thirty thousand

dollars divided by to do this math

correctly four dollars and 76 cents

would take 6 300 hours okay now we're

going to divide that by 22 hours in a

day that they can operate this that's

286 days this company literally starts

profiting on these chips

in 286 days with that Assumption of 90

uptime right

divided by 12. this company profit sorry

divided by 30 for days

this company starts profiting on the

chips after nine and a half months

and they have it listed as Reserve now

you can't even get it right now they're

still taking the three-year-old

technology the three-year-old technology

that this loser because they're lying to

you I don't know this person but because

it appears they're lying to you I'm

calling them a loser okay this loser is

saying Nvidia technology is going to be

obsolete in two to three years really so

the 2020 a100 the 2020 a100 that is

still

selling at a market rate somewhere I

would say at the low about a buck 80.

let me let me look at the market I'm

gonna look at uh a100 uh let's go with

the 80 GP

uh per hour but at least on this website

two bucks an hour right

that's obsolete

no it's absolutely not

uh so let me see if I can go rent this

somewhere else let's go to here GPU

pricing Google Cloud okay what do we got

here

uh I want the a100 what's the p100

a100 p100 T4 P4 God there's so many

freaking numbers

where is the uh what is an Nvidia T4

uh I don't know these are all I don't

know what these are here we go

virtualization our Google Cloud's too

complicated for this so

a100 a100 server per hour come on baby

a100 on demand

who's this Lambda what are they gonna

sell it to me for

Lambda that's h100

pricing I want Lambda pricing okay

pricing let's see what they got Lambda

pricing

h100

uh oh intro price ooh intro price Buck

99 but I think that's a teaser because

you have to have a minimum set of hours

to get that let me see you have to sign

up for free so they I'm pretty sure I'm

pretty sure I'm not 100 sure but it's

worth looking into I'm pretty sure

Lambda says you have to get a certain

minimum number of hours and so that's

how they advertise a lower price but

even Lambda for one a100 with their

minimums is at a buck 10 an hour uh for

an a100 and again I think they they

showcase that is cheaper because they do

minimum pricing not sure about that but

still the point is a buck 10 an hour

that's fantastic if I can buy an a100 on

Amazon for 6 700 bucks right now I

uh rent it out at a buck 10 an hour

not assuming any bulk you know any of

the discounts or minimum pricing or

whatever and I have 22 hour uptime I

also break even on that in nine months

so so they're wrong

anyway so we keep going

the strategy brings to mind the downfall

of FTX no it doesn't uh analyst writer

broke down the Nvidia Revenue Nvidia

file it's last quarter 10q if you

followed with surprise let's get into it

okay let me see their thread let's get

the full thread

oh these people are exhausting

Come on load you dummy

what is this trash

oh

why

the thread must be so rigged it's not

even loading

this brilliantly highlights certain

accounting Maneuvers and financing

strategies oh let's hear the accounting

Maneuvers come on all right whatever

let's just read what they're saying all

right the circular movement of money is

becoming obvious with a Ponzi feeling

hedge funds asset managers lend money to

core weave yeah you can make great

asset-backed yields right now on lending

money to a company you're probably

lending it seven to ten percent backed

by gpus that are highly valuable it's a

great idea core we've purchases gpus duh

because they can make a lot of money on

renting out the gpus right now Nvidia

share goes up Revenue beats rinse and

repeat it's great

as long as the demand is there where it

falls apart is when demand goes away if

people stop renting the core weave

machines then core weaves not going to

keep buying the chips

that's when you have a problem and it is

possible that AI is in a hype cycle that

is absolutely possible in fact if you

look at the sales force uh of goodies so

we did this in a course member live uh

there were some concerns I actually did

have about this

sales for Salesforce sales for

Salesforce I'll give you the the gist of

it okay

so I thought this was interesting here

they talk about their partnership with

Salesforce uh and Microsoft well

Salesforce talks about their partnership

with Microsoft and they're basically

like

they're kind of suggesting that things

that Microsoft are great like not that

great because Microsoft is basically

like begging Salesforce to increase

their partnership with them Salesforce

apparently didn't even want it I thought

that was very interesting uh and you

could read the details over here but

then you have an analyst here saying

that it seems like demand is stabilizing

not recovering and people are waiting

for Budget presets which isn't great to

see in like the AI world and then you

literally have the CEO here saying

oh let me let me read it to you because

it's worth it ready for this the analyst

says okay Frank just as you spoke to a

lot of Executives at Summit do they

recognize the fast the fact that the

road to AI does require perhaps a

heavier level of investment than they

were thinking 12 months ago how do you

think that factors into thinking of

budgets in 2024 in other words how much

AI spend are we going to see in 2024

and the CEO

of sorry did I say Salesforce I meant

snowflake

yeah I said Salesforce I meant snowflake

who cares the CEO of snowflake says yes

the reality is they don't know in other

words other companies don't know how

much money they're going to have to

invest in AI in other words it's going

to have to be a substantial you're gonna

have to buy a lot of Nvidia chips

to to supplement like what what these

companies needs but there's another

problem with this you ready for this

listen quote I mean I think a lot of

people I think is corrected I think they

have characterized their foray into

language models as experimental

exploratory and sort of trying to get

their arms around how big the bread box

is

you have to be very or there's a very

potent business business model but we're

not sure if people are willing to pay

for it in so many words no business

model that people pay for and will get

tired really really quickly blah blah

blah blah okay let me just translate

what the CEO you're saying and and you

can read this yourself but I wrote down

a translation this is the stuff we do in

the course member live streams if you're

not part of them you're missing out go

to meet kevin.com to learn more so you

can be part of this every day real

analysis

none of this click bait garbage where

the article is full of garbage

what is this

in my opinion the CEO of snowflake is

literally saying with this stutter

because they have the stutter in the

translation as well the CEO is literally

saying

um yeah so companies are kind of just

diving in blind to Ai and like YOLO

let's see where it goes but we don't

really know if it's gonna be profitable

do you no you don't either

that is a red flag for AI

okay where there is not a red flag for

AI which I thought was very interesting

was this talk about health care about

massive opportunities in healthcare

actually exploding their investments

into artificial intelligence now that I

thought was very interesting because

what we're really saying is the

healthcare stack is going all in on AI

but the other companies don't quite know

yet what's going on with AI

so

in other words

long and short out of all of this

is NVIDIA a fraud

because some companies borrowing money

secured by Nvidia gpus to buy more gpus

to license them to other people no

expect a business to do if you were the

CEO of a company that had a bank of

servers

and you're like oh my gosh we could

charge four dollars per hour running

h100 chips as all these people do their

experimental stuff or Healthcare goes

nuts over this stuff

you would do it too

and if you could get a loan backed by

what you're buying which is kind of like

look you go buy a plane

okay you get a loan on a jet like the

most popular business jet in the world

the Phenom 300 yes that's what this is

this is actually a Phenom 300E and it's

not because it's electric that'd be cool

it's because it's supposed to be more

efficient

imagine that a more efficient jet it

actually gets miles to the gallon as

opposed to most jets that get gallons to

the mile I know that's that's true story

when you buy a plane

borrow money to buy the plane guess what

the loan is backed by it's backed by the

plane

when you buy a car and you get a loan

against the car what's it back by the

car see where I'm going with this you

buy a house what's the loan back by the

house

so you buy gpus what's the loan back by

the gpus are they worthless after three

years no we've proven they're not

so the basis of this person's argument

falls apart

and yeah I'm an Nvidia shareholder but

if if I found something that I thought

was actual fraud I'd be sitting right

here and go guys and gals dump it we're

out

that's it we're out

but this is bull crap this is exactly

what I would expect companies to be

doing

and I don't care

uh this is not a big deal what a big

deal is and what's actually real news

about AI is what snowflake is saying and

this is why I've been saying I am

uncertain about software companies I

think software companies could end up

getting reamed

uh because I don't think they're gonna

figure out how to make money on this

that's why I invest instead of in the

software companies or more risky uh you

know companies like uh like like

snowflake

uh rather than investing in these

software companies I'm gonna invest in

the chips Nvidia TSM asml or where

there's real AI like Tesla

okay now obviously it's gonna take until

interest rates fall for some of these

companies to actually actually really do

well those are going to be your uh end

phase and your Teslas these companies

will do a lot better in 2024 when rates

actually start coming down you build

your position now you suffer uh and then

hopefully you have a good good position

when uh when things get better

but uh yeah is is NVIDIA here scam

because of this no

is NVIDIA potentially a scam for other

reasons maybe I don't it's not this

okay this makes for good Twitter

clickbait but then again that's like all

Twitter's useful for I'm sorry okay I

actually was bitching about this and

then Elon Musk within 35 minutes of me

posting saying you know I'm tired of

these like low context headlines going

viral on Twitter within 30 minutes Elon

Musk maybe 35 minutes Elon Musk posted a

tweeter you know we're just trying to

make the best platform we can we might

fail but at least we'll try

I'm sorry man I didn't mean to bag on

the guy you know I'm not trying to kick

on Elon here but but there are there are

some problems with Twitter

don't correct me and call it X

it's gonna take a while to transition to

calling it x-meds

it's Twitter

it's gonna be Twitter for a while

people are still gonna poop tweet

instead of poop X

this doesn't flow like the cool thing

about Twitter is that tweeting became

like Xerox oh go Xerox It Go tweet it

but the problem is you ended up with uh

go exit

that's stupid you ruined it I know

you're trying to get away from like the

previous like reputation that Twitter

had but you literally lost the verb man

like oh pass me a Kleenex that's a great

brand right

uh I want a Coke oh we only have Pepsi

Ah that's okay same thing you know Coke

is like a replacement for Cola Kleenex

is a replacement for tissues Xerox is a

verb for go copy it but it's also copy

machine brand tweet was a verb for shout

it out on the internet now you replace

it with post right now you became boring

like YouTube and I'll go post the video

go post to Facebook go post on threads

that was stupid

I know I know you're going for the whole

oh the new x.com the greater app and

everything but you got rid of the verb

that was dumb that was very dumb man I'm

sorry it's just my opinion I'm not I'm

not Mr Elon Musk guy okay I

don't get on my knees and only worship

Elon Musk if you want to go viral on

Twitter that's all you have to do I'm

sure they probably demote my algorithm

on Twitter and pump up the you know the

Elon you know BJ folks on Twitter

because all if you want to go if you

want more subscribers on Twitter just

say nice things about Elon Musk but then

you're lying to your audience and that's

a short-term game short-term gain don't

lie to your audience if you're wrong

you're wrong I've been wrong before I'll

be wrong again but at least I'm gonna

give you my opinion congratulations man

you have done so much people love you

people looked up to you which I say yes

meet Kevin where does this mean we are

in the economic cycle should we be

thinking about buying real estate should

we be thinking about buying stocks I

have a background account in real estate

as a real estate agent real estate

broker real estate investor a stock

market investor and fund manager why not

advertise these things that you told us

here we'll try a little advertising and

see how it goes always great to have you

on Kevin path right there financial

analyst and YouTuber meet Kevin

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