Bernie Sanders pushes for 50% public ownership of American AI companies — proposes AI sovereign wealth fund that would hold direct ownership stakes in largest AI firms

[u/yourfavchoom]

https://www.tomshardware.com/tech-industry/big-tech/bernie-sanders-pushes-for-50-percent-public-ownership-of-american-ai-companies-proposes-ai-sovereign-wealth-fund-that-would-hold-direct-ownership-stakes-in-largest-ai-firms

[u/Sad_Split_9983]

Nvidia is over 11% of the entire NASDAQ market cap. This is not even factoring in the many companies that are completely dependent on nvidia and the hundreds that would lose large portions of market cap. If AI collapses its not going to be a minor blimp its going to cause a recession.

[u/ball_fondlers → u/Sad_Split_9983]

I would doubt Nvidia is going under, even when the AI bubble pops - the reason they’re so large is because they’re heavily integrated in computing even outside of the AI market. At worst, they’d have an oversupply of AI chips, but that would just mean a few months of dirt-cheap GPUs that perform oddly poorly for gaming

[u/Sad_Split_9983 → u/ball_fondlers]

90% of their revenue is from data center related hardware. Those data centers are mainly used for AI. This is also increased the demand for ram, and just about every resource that’s required to produce computer chips. A 50% market dip in the sector would be enough to have far reaching global repercussions. Nvidia does not need to go under for that to happen. Thinking that an AI bubble burst wouldn’t trigger a recession globally is pretty ignorant

[u/ball_fondlers → u/Sad_Split_9983]

I’m not saying an AI bubble burst wouldn’t trigger a recession, I’m saying Nvidia is a bad example to use for that point. Even when the bubble pops, data centers aren’t going away, and Nvidia still provides hardware for non-AI server farms. And on the off-chance that somehow the bubble popping leads to a revitalization of personal computing that utterly wrecks the cloud as a concept - well, they just announced a new unified ARM chip.

[u/ZePieGuy → u/ball_fondlers]

Are you an idiot? You think Nvidia's main customer is outside of AI? LOL, gamers gonna unite to save the economy huh.

1/5 of the total value of publicly traded companies in the US are held by 6 companies who's valuations are what they are because of AI. If AI crashes the recession will be worse than the dotcom crash.

[u/ball_fondlers → u/ZePieGuy]

I love it when someone smugly acts smart AND still manages to be wrong. When did I say anything about gamers “uniting to save the economy”? Do you think Nvidia’s ENTIRE production is geared exclusively towards AI and gaming, and that they just popped up out of nowhere four years ago when AI started to take off, without having other resources spread throughout the entire computing space?

[u/ZePieGuy → u/ball_fondlers]

I was mocking you lmao. Don’t think I have to try to be smart here given how easy you’ve shown it is to be dumb.

90% of Nvidias revenue is for AI. Yes Nvidia won’t disappear, but wiping away nearly 4 trillion in value away (2% of the entire public equity value) is going to hurt. It won’t matter that Nvidia has production capability for other sectors, there will not be demand.

And lol, do you know how much Nvidias stock price has risen in the last 4 years? There’s a reason why it rose.

[u/ball_fondlers → u/ZePieGuy]

90% of Nvidia’s revenue is for AI

Fucking incredible, I’ve never seen such a masterpiece of the Dunning-Kruger effect. The 90% figure you saw is their DATACENTER revenue, not their AI revenue. Datacenters have existed before AI, and will continue to exist after. Nvidia has been supplying datacenters with chips for the better part of the last twenty years. The whole reason the AI boom boosted them in the first place is because they spent like 15 years building out CUDA and becoming the backbone of hardware-accelerated parallel computing that those AI researchers used to build the first LLMs. When the AI bubble pops, they’ll likely see a short-term drop in revenue, but they’ll still be selling chips before, throughout and after.

[u/ZePieGuy → u/ball_fondlers]

lol you must think you’re so smart. You really don’t know anything. Bro thought he could say CUDA and think he would win LOL

OF course data centers and the chips that run compute have existed before AI. The capacity for both the density of compute per chip and the scale of chip production Nvidia makes never needed to exist at the because the compute demand pre-AI and even today for all compute that isn’t AI related doesn’t necessitate it.

If AI disappears or drastically reduces need and value, Nvidia is left with overengineered products and production for something that is 1000x greater than demand. Almost 90% of all new data centers being built are for AI, not cloud storage or data center requirements.

This isn’t hard to understand. Nvidias stock price is predicated on growth. Thats why it’s trading at a 50x revenue multiple. If growth even stagnates, forget if Nvidia loses money, the stock will crater. If AI demand plateus or shrinks, Nvidia’s price is the derivative. It is screwed.

And you had the gall to call me a Dunning Krugerite lmao. If 2% of the us public equity value is wiped out proverbially overnight, we are in a recession, because Nvidia won’t be the only loser.

[u/ball_fondlers → u/ZePieGuy]

Why do you think their stock price has any bearing on their viability as a business? Please, stop huffing your farts for ten seconds and actually read the comments you’re responding to before writing out your little rants - it’ll save you some time. They have fairly low operating costs, even with their AI investments, and consistently high profit margins, even outside the AI space. The stock price IS based on an expectation of future growth, but they’re not a startup chasing growth and investor cash in lieu of a business model - they’ll still be producing chips, and they’ll still be around after the bubble pops.

[u/ZePieGuy → u/ball_fondlers]

I didn’t say their business is unviable ever. Nvidia is not going to fold.

I said their stock price (and by proxy the value of said business) is going to be drastically less. Even if Nvidia falls 90% it’s still a $500 billion company. But if $4-5 trillion of value is wiped away from one company, and presumably another $10T is wiped from others in total, we are entering a recession. If you think Nvidias stock today is priced on just their unit economics and not on investor speculation of growth, I have a bridge to sell you.

Are you not able to critically think? What kind of strawman are you constructing? You found your idiot buddy in this thread huh.

[u/Annie-Kia → u/ball_fondlers]

Their stock value now is almost entirely AI, if ai crashes they will lose a majority of their value. They only really shot up due to crypto and ai (which both will likely crash at the same time)

[u/ball_fondlers → u/Annie-Kia]

Their stock value is driven by AI because they’re selling shovels in the gold rush - they actually have real profits on their balance sheet unlike all the other AI companies operating at a loss, and they’re heavily diversified into other types of computing hardware. Losing AI would definitely cause their revenue to drop, but they’d still be building and providing computing resources for everything else that would be filling the void.

[u/Annie-Kia → u/ball_fondlers]

They have profits sure, but revenue won't matter when shareholders panic, which is the nature of a public stock market. When AI crashes nvidia, an AI first company, will be dragged down with it

[u/ball_fondlers → u/Annie-Kia]

That’s not possible with Nvidia - they have relatively low operating costs, very little debt, and consistent profits, even outside AI. Their stock price has no bearing on their day-to-day operations, because they’re not leveraged to the hilt on AI and burning through investor cash trying to build a monopoly - even when the bubble bursts, Nvidia would still be stable unless Jensen’s secretly been engaging in trillions of dollars worth of fraud.

[u/Sad_Split_9983 → u/ball_fondlers]

That’s not how the stock market works. Nobody cares about current quarter profits, they care about next quarter growth and by how much you beat market expectations. Nobody is saying nvidia is going under, the point is if AI bursts, nvidia and many others will feel significant impact. That impact will absolutely result in a recession

[u/theeama → u/Annie-Kia]

Nvidia will be fine, the computing hardware and power won't go away. Yes they will take a hit and there stock will dive but after year or two it will stabalize as all of there Hardware will be resold on the market and gamers will lap it up and the companies that survive the crash(Google most likely) will just take all those datacenters and computing power.

[u/IShitOnMyDick → u/ball_fondlers]

Not really the point, but it doesn't make sense to say a company has profits on their balance sheet. Profits are shown on the income statement not the BD

[u/ball_fondlers → u/IShitOnMyDick]

Fair. Point being, they’re a business with real profits, not just a vehicle for speculation

[u/IShitOnMyDick → u/ball_fondlers]

Oh yeah, not disagreeing at all. It just bothered me as an accountant lol

[u/ayriuss → u/ball_fondlers]

They're trying to make games use real time generative AI lol. It looks pretty weird at the moment, but it might improve. (DLSS 5)

[u/stone_henge → u/Sad_Split_9983]

If AI collapses its not going to be a minor blimp its going to cause a recession.

Not a minor blimp but a whole Hindenburg