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Nvidia insists it isn’t Enron, but its AI deals are testing investor faith
(www.theguardian.com)
this post was submitted on 30 Dec 2025
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Sell chips to X
Receive stock in X
Value of stocks = discounted sum of future (fake) income
Booked as an asset on the balance sheet
This is exactly like Enron but the underlying commodity isn't energy, it's compute.
Nvidia sells plenty of GPUs for actual money, they are good for it.
No, the real issue is the depreciation for the people owning GPUs. Your GPU will be usable for 4-6 years, and 2-4 of those years will be spent as ”the cheap old GPU. After that time, you need new GPUs. (And as the models are larger by then, you need moahr GPU)
How the actual fuck do these people expect to get any ROI on that scale with those timeframes? With training, maybe the trained model can be an asset (lol), but for inference there are basically no residual benefits.
enron sold plenty of gas and real things too: it’s the double handling that’s the problem; not the nature of the goods or services
The relative size of the double handling is the potential problem. I think Nvidia is just trying to extend the gold rush for a bit longer.