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neilwilsontoday at 5:18 PM1 replyview on HN

All debt is money. Anybody can create money, the trick is getting other people to accept it.

Nvidia is vendor financing its output.

An ai company order $100m of GPUs. Nvidia delivers and holds onto that debt as an asset - like a bank loan.

The production company uses AI to create better plant and purchases $100m of AI tokens to do so. The ai company hold that debt like a bank loan

Nvidia requests $100m of production based on its $100m of orders. The production company holds that debt like a bank loan.

You now have a monetary loop. Take a single $10 bank deposit and Nvidia pays the production company, who pays the ai company who pays Nvidia. Run that round the circle a few million times and everybody has been paid.

Rinse and repeat.


Replies

creativeSlumbertoday at 5:54 PM

If the debt cancels out doesn't this mean that there was no debt ?

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