alt Hacker NewsWhat's the downside of that for the economy? It seems like it would be the market becoming more efficient, cutting down on margins and so on. Bringing Nvidia back to earth might open up cheaper hardware for other companies to work with and accelerate AI anyway.
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It’s not a given that markets are able to navigate the risk between massive capital investment and unknown future revenues. Everyone is trying to figure out the long term value from AI. For a made up numbers example the path might require $1T investment to unlock $10T revenue in 10 years from now. But if no one can put up the $1T it stalls and doesn’t happen next decade
The hardware is expensive because it's supply constrained. Demand far exceeds supply.
Harming Nvidia would only make us more compute constrained, and raise prices further.
It seems it's impossible to get a certain type of person to understand this regardless of whether it's housing, education or chips.
Harming the producers of [thing] or disincentivizing profits will not make [thing] cheaper if demand remains the same (or if it is growing, like in all of the areas I mentioned).
Have you ever considered that an efficient economy is you paying everything you have for food and living in absolute poverty
Efficiency is a great thing and long term what’s needed so we can buy laptops again at a reasonable price. There will be a pretty large blast radius across ANT/OAI/ORCL/SPCX/TSMC/neoclouds. Prob 15T of market value at risk and the flywheel of investment which is conditioned on investors and the economy believing they have durable appreciation locked up in AI stocks (“if my basket of investments is safe, I’m willing to invest my next dollar in more of it” vs “the sky is falling and I need to tighten the belt / pull money out”). I’m trying not to be a doomer here as I think it’s somewhere in the middle it’s just very frothy and the upside scenarios generally envisioned NVDA to be stable