DP

third worldism hater

[DP @GoldsteinRec]

Straight up waffle

[Bull Theory @BullTheoryio]

🚨Michael Burry says Nvidia has 3 big customers and if they stop buying the whole thing is over.

Those 3 customers now account for 64% of Nvidia's entire accounts receivable.

In 2020 that number was 33%. It jumped 8 percentage points in a single quarter.

Nvidia's revenue is not spread across a broad market. It is almost entirely dependent on a handful of buyers.

Burry's argument is about why those buyers may slow down or stop entirely.

He calls it the "bezzle." The bezzle is not that AI is fake. It is that a massive portion of current AI spending is coming from companies that are benchmarking models, testing systems, and competing on AI leaderboards.

That activity is temporary. It will end. But it is being counted and financed today as if it is permanent growing demand.

He says: "They are just flying empty airplanes around."

When that benchmarking phase ends those 3 concentrated customers have far less reason to keep ordering chips at the current pace.

And because Nvidia's revenue is this concentrated even a partial slowdown from those buyers creates a massive hole in its numbers.

Now here is where it gets more alarming.

Microsoft, Amazon, Alphabet, Meta, and Oracle together have $662 billion in off balance sheet AI commitments according to Moody's.

Standard accounting rules allow companies to keep this completely hidden from their reported numbers.

To fund this infrastructure private equity firms have been buying life insurance companies.

But why?

A PE firm owns illiquid investments that need financing. It buys an insurance company which collects premiums from ordinary policyholders. That insurance company then invests those premiums into the PE firm's own illiquid assets.

The PE firm then sets up a captive reinsurer in Bermuda with lighter capital requirements and pushes the insurance risk onto that offshore balance sheet.

Burry's point is that all of this is connected. The same PE firms own the insurance companies funding the AI debt. The same Bermuda structures hold the risk.

If any major hyperscaler walks away from a data center commitment everything hits at the same time because every counterparty in the chain is linked to the same underlying assets.

The AI boom is being measured during the most artificial phase of the buildout.

Nobody knows what real demand looks like when the benchmarking phase is over and $662 billion in hidden commitments needs to be serviced.

[DP @GoldsteinRec]

Which is why you pour everything into building infrastructure

[Oxford Analytics @OxfordAnalytics]

The AI Bubble is being driven by the fantasy that AI can replace human labour cost effectively. It can’t. The cost of compute is too high. Semiconductors are too expensive. GPU’s, CPU’s, even a commodity like NAND flash memory. Power is too expensive. Water is too scarce. Key metals are too expensive. It’s cheaper for humans to do the work than burning tokens using Claude Code or OpenAI Codex. The layoffs were premature. Humans are cheaper than compute.

[DP @GoldsteinRec]

@Danosocxerguy @ConnCFC Is a manager quitting mid season usual in your view?

[DP @GoldsteinRec]

What do people think Anderson is? 😭😭😭

[Conn @ConnCFC]

City finished 2nd and won both domestic cups and their first response is to go for Anderson. As a Chelsea fan just makes you sad man, we’ll never be in these convos. Don’t see us catching teams like City anytime soon 😔

[DP @GoldsteinRec]

If a literal candidate for the presidency of Real Madrid is lying through his teeth, just imagine what 90% of these absolute grifter “journalists” these retards believe are doing? 😭😭

[Fabrizio Romano @FabrizioRomano]

🚨⚠️ EXCLUSIVE: Erling Haaland’s father Alfie and agent Rafaela Pimenta clarify Real Madrid agreement reports.

“All very entertaining but NOT true. We wish all the best for both candidates in the Real Madrid elections”.

Exclusive statement from Alfie Haaland & Rafaela Pimenta.

[DP @GoldsteinRec]

@Danosocxerguy @ConnCFC I’m sorry, were we not comfortably in the top four and having a relatively normal season until the manager decided to throw a temper tantrum like a spoilt child and quit?

[DP @GoldsteinRec]

@ConnCFC We don’t need as much as people think. As long as the land mines like Rogers are avoided, it should be a good summer.

[DP @GoldsteinRec]

@ConnCFC I don’t see why not. Underneath the chaos and terrible season, there’s a really good core there that’s ready to emerge under the right manager who actually knows what direction he wants to take the team.

[DP @GoldsteinRec]

@ConnCFC 10th is a false position. It was the outcome of a freakish set of events. We need to make 4 good signings and it’s the easiest entry back into the CL then a title challenge.

[DP @GoldsteinRec]

@ConnCFC It is the fourth of June. We just got a new manager. We don’t know who’s leaving. Calm the fuck down 💀

[DP @GoldsteinRec]

I would, actually. The narrative on here has become exhausting. You have people from third world shit holes talking down on my city you know. Scandalous.

[D @_Unknown_D_]

Let’s say you have just an entry level Rolex worth £12k. You’d feel comfortable wearing that around London?

[DP @GoldsteinRec]

Reminds me when my good friend @IslingtonEnjoyr spoiled the ending of World War II for me. Haven’t spoken to him since.

[claire @CineClaire]

Tom Holland spoiling The Odyssey is career suicide with Nolan

[DP @GoldsteinRec]

There are people who believe the infra buildup is unjustified 😭😭😭

[DP @GoldsteinRec]

😭😭😭😭

[Negligible Capital @negligible_cap]

*UBER SETS $1,500 MONTHLY CAP ON SOME AI CODING TOOLS FOR STAFF

$UBER officially reeling in the Claude budget after blowing their AI budget earlier this year.

Undoubtedly more companies to follow

[DP @GoldsteinRec]

@NotPaneen It’s where my mother’s side of the family have lived for ages so I spent a lot of time here as a child during school holidays etc. Grew to like it quite a lot

[DP @GoldsteinRec]

Do I only have half the rights then because I’m only half British? 🧐

[Zoomer @ZoomerHistorian]

Division is good.

Britain is a country for the British people, who are White.

Only ethically British people should have voting rights, access to the NHS and the like.

All non-Europeans should be deported.

All other Europeans are guests and shouldn’t have the same rights.

[DP @GoldsteinRec]

@NotPaneen 🇳🇱🇮🇹

[DP @GoldsteinRec]

@NotPaneen Real shit. They survived centuries without being on the map, they can survive this!

[DP @GoldsteinRec]

Agency. Agency. Agency. This is no excuse. https://t.co/1jit0w06K1

[DP @GoldsteinRec]

I’m not watching anyway

[DP @GoldsteinRec]

Why does basically every blockbuster movie have to have this “Zendaya” character? Put Harvey back in charge man

[DiscussingFilm @DiscussingFilm]

New poster for Christopher Nolan's ‘THE ODYSSEY’.

In theaters on July 17.