I’m not qualified to explain this well. But there’s the concept of velocity of money. The higher velocity that’s supposed to mean the economy is doing good. Generally it’s between lots of people so it’s spread out. In this case it’s only between a small handful of companies, and as soon as it starts drying up then bad things can happen really quickly.
Isn’t OpenAI also investing heavily into Nvidia? How the hell does that work? They’re just circulating money around?
Yes, yes they are.
I’m not qualified to explain this well. But there’s the concept of velocity of money. The higher velocity that’s supposed to mean the economy is doing good. Generally it’s between lots of people so it’s spread out. In this case it’s only between a small handful of companies, and as soon as it starts drying up then bad things can happen really quickly.