Tianyu Qi @CKGOCHANNEL: "OpenAI CFO’s recent interview has..."

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OpenAI CFO’s recent interview has given us a glimpse of how she thinks the government may have to come to the rescue if the current AI cycle is to stay. The recent wave of circular financing in the AI sector has evolved rapidly, raising concerns about the true durability of GPU demand and the financial structures built around it. Comments by OpenAI’s CFO reveal that chip-based financing depends heavily on how long frontier GPUs remain useful; shorter technological cycles make such financing increasingly risky and reliant on banks, private funds, and potentially governments. The xAI–Nvidia transaction exemplifies this complexity: xAI created an SPV to raise USD 20 billion—partly funded by Nvidia itself—to purchase $NVDA (NVIDIA Corporation) GPUs, with xAI then leasing the chips to avoid on-balance-sheet debt and dilution. Lenders rely on GPUs as collateral despite rapid depreciation. Meanwhile, operators extend depreciation schedules to inflate profits even as chip lifespans shorten. As leverage accumulates across SPVs, lenders, and investors, sustainability becomes uncertain, prompting growing discussion of government intervention as the ultimate backstop. $SPX500 $MSFT (Microsoft) $NSDQ100 youtu.be/2yAx0f9B3v8

Not investment advice. The author may have financial interests in the mentioned instruments.