It's not "continue" buying as much as this is NVIDIA fronting the money for (most of) the hardware OpenAI has already ordered from them. It's like borrowing rent money from your drug dealer.
It's like credit cards loaning money to people who are unemployed and will default on payments. It's a risky business that is legal and can be very profitable, but may also be disastrous in the future.
I don't see the problem as long as materially significant transactions by publicly traded companies are properly disclosed to investors. If someone loses money by buying NVDA then they have only themselves to blame.
Tuld wasn't wrong. There will always be financial bubbles and misallocation of capital. It can't be prevented, and even trying to prevent it would involve intrusive government overreach that would make most people even more unhappy. Investors who want safety are free to buy Treasuries.
Come on, calling a round of vendor financing (which is what the NVIDIA money is) "funding" is eggregiously misleading. The only new money entering the sector from this is SoftBank's stake.
They might have dressed up the wording, but the details are all there for anyone who wants to objectively look at the deal. It is a group of two executives making a non coerced deal and disclosing the required information to investors.
Might be a stupid gamble, but it's not akin to a loan shark shaking down a hungry, cold person for life's essentials.
