alt Hacker NewsIsnt that... what circular financing often refers to?
If I invest in you and you use my stack and pay me for it. It's circular. I don't think it should be illegal to do this type of vendor financing/investment or what not as it has its legitimate uses.
But it is circular.
Replies
The money that Nvidia gives to these companies hardly make a dent in Nvidia's total revenue.
It's just to make sure the next OpenAI uses Nvidia stack.
I don't think 1 loop is enough. You could remove the loop by just giving the GPUs directly as part of the investment. But investing in pure cash gives more flexibility especially in time where there may not even been spare GPUs able to be given away.
no, circular financing refers to it bouncing through several loops of that. the implication is that it’s system predators working the math, not the business. you should hear it in the same tones that bankers use the word leverage
> If I invest in you and you use my stack and pay me for it. It's circular.
If I invest in you SO THAT you buy from me IN ORDER to materially and artificially boost my revenue.