Nvidia is giving OpenAi money (through investment) to buy Nvidia chips. The bubble is that Nvidia got that money from its crazy high stock price, the extra investment raises OpenAi’s evaluation and the increased sells raises Nvidia’s evaluation. If the valuations see a correction then spending like this will decrease, further decreasing valuations.

Bubble collapsing looks like enshittification of OpenAI tools as they try to raise revenues. It’ll ripple all throughout tech as everyone is tied into LLMs, and capital will be harder to come by.

> The bubble is that Nvidia got that money from its crazy high stock price,

This is totally False, NVDA has not done any stock offerings. The money is coming from the ungodly amount of GPUs they are selling. In fact they are doing the opposite, they are buying back their stock because they have more money that they know what to do with.

NVDA outstanding shares are down ~1.2% year over year; the company has been buying back its own shares with —>> profits <<— to the tune of tens of billions.

Meanwhile NVDA stock is mildly up on this news, so the current owners of NVDA seem to like this investment. Or at least not hate it.

Agreed that we’ll see ad-enabled ChatGPT in about five minutes. What’s not clear is how easily we’ll be able to identify the ads.

Valuations won’t see a correction for the core players, I have no idea why people think that. Both of these companies are already money factories.

Then consider we are about to lower interest rates and kick off the growth cycle again. The only way these valuations are going is way up for the foreseeable future

> Bubble collapsing looks like enshittification of OpenAI tools as they try to raise revenues

Why does monetizing OpenAI tools lead to bubble collapse? People are clearly willing to pay for LLMs