Chipwrecked

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The AI data center build-out, as it currently stands, is dependent on two things: Nvidia chips and borrowed money. Perhaps it was inevitable that people would begin using Nvidia chips to borrow money. As the craze has gone on, I have begun to worry about the weaknesses of the AI data center boom; looking deeper into the financial part of this world, I have not been reassured.

Nvidia has plowed plenty of money into the AI space, with more than 70 investments in AI companies just this year, according to PitchBook data. Among the billions it's splashed out, there's one important category: neoclouds, as exemplified by CoreWeave, the publicly tr …

Read the full story at The Verge.



source https://www.theverge.com/ai-artificial-intelligence/848988/nvidia-chip-loans-coreweave-gpu-debt-ai-neocloud

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