Nvidia insists it isn’t Enron, but its AI deals are testing investor faith | Nvidia

https://www.theguardian.com/technology/2025/dec/28/nvidia-insists-it-isnt-enron-but-its-ai-deals-are-testing-investor-faith

Posted by Alex09464367

4 comments

  1. TL;DR: The problem:

    >The start of these concerns has been the circular nature of many of its deals. These arrangements resemble vendor financing: [Nvidia](https://www.theguardian.com/technology/nvidia) lending money to customers so they can buy its products.

    The implication:

    >Essentially, whether Nvidia is able to stick the landing depends on whether AI really takes off, generating billions for its corporate users and putting companies such as OpenAI, Anthropic and CoreWeave – Nvidia’s customers – firmly in the black, and able to keep buying its systems. That possibility alone is debatable. If this does not happen, says Dai, Nvidia “could face write-downs on equity stakes and unpaid receivables”: meaning, it could lose a lot of money and its stock price could then tank.

    Who knows? There is a lot of pessimism around Nvidia’s growth and every armchair analyst loves to talk about the AI bubble. This article is just another example. But when stock prices are fighting through laymen’s pessimism, you have to think that it bodes somewhat well. AI is certainly improving and will continue to do so, but whether OpenAI will be [Amazon.com](http://Amazon.com) or [TheGlobe.com](http://TheGlobe.com) 20 years from now is anyone’s guess.

  2. There’s a lot of very, very big companies who has A LOT of money riding on AI becoming the next big thing so we’re seeing a shit ton of hype for a technology that is yet to actually generate any value.

    We’re boiling the planet and betting the global economy on AI suddenly becoming something more useful than a silly image generator and glorified autocomplete.

  3. The comparison is nonsensical. Enron was a fraud through and through. They had no actual product. If there is an AI bubble, it’s akin to the 2000 dot com one, and we’re still using Amazon and Cisco as far as I can tell.

  4. Rule of thumb: when a ceo has to say “we are not enron” chances are, they are like enron. Look, its not a secret that most us companies have an inflated value, but nvidia has shown several concerning signs recently. Wouldnt be the first “cant fail” company to go bust, and wouldnt be the last

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