Sophie R.
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philocitea.bsky.social
Sophie R.
@philocitea.bsky.social
21 followers 34 following 1 posts
🏳️‍⚧️ Proud trans girl, aspiring designer
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Reposted by Sophie R.
edzitron.com
There's no real market for renting GPUs for AI, and the largest companies doing so - Nebius, CoreWeave and Lambda - are massively unprofitable, existing only to raise billions in debt to buy NVIDIA GPUs, collateralized by GPUs and contracts...provided by NVIDIA.
www.wheresyoured.at/is-there-any...
There Is No Real Market For AI Compute Big tech is expected to spend $400 billion in capital expenditures in 2025, all to capture demand for an industry that will struggle to cross $40 billion in revenue in the same year. Based on my estimates, there is barely a billion dollars of real, non-big tech revenue in AI compute, a pathetic sum that suggests that there really is no demand in this industry. It would be one thing if that demand was there on a few hundred million dollars of capex, but at over half a trillion dollars over the last two years alone, it's hard to see how any of this ever goes in the green. In a very real sense, the AI bubble is private equity feeding billions of dollars to NVIDIA, which then feeds those billions back into its Neoclouds in the hopes that they will continue to be able to raise debt to buy more GPUs. These Neoclouds have yet to prove they can even provide the compute to soak up the supposed billions of dollars of contracts they've signed, and that's before you get to how OpenAI can't afford to pay them. And if they can't build the capacity, and can't get the money from providing their compute, how the fuck do these Neoclouds pay their debt? I don't know, but I think private credit is about to take a bath.
September 19, 2025 at 4:38 PM
philocitea.bsky.social
Ohai, thanks!
August 21, 2023 at 7:38 PM