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A comment on OpenAI and Nvidia Announce Partnership to Deploy 10GW of Nvidia Systems. Parent comment

Re:OpenAI and Nvidia Announce Partnership to Deploy 10GW of ... by JCM9 on Monday September 22, 2025 @03:52PM (#45338605)
A company buys back its stock if it thinks the stock is underpriced. Otherwise when “you have more money than you know what to with” you give it to your shareholders via a dividend. A concept mostly forgotten by tech companies.
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Re:OpenAI and Nvidia Announce Partnership to Deploy 10GW of ... by drexlspivey on Monday September 22, 2025 @07:37PM (#45340987)
A company buys back stock because distributing dividends incurs a 30% withholding tax.
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Re:OpenAI and Nvidia Announce Partnership to Deploy 10GW of ... by rhetocj23 on Tuesday September 23, 2025 @12:57PM (#45349745)
Sorry guys but this is why I dont want to see many finance related posts here, because very few know what they are talking about.

Buybacks are the preferred method of RETURNING CASH to shareholders, because dividends historically have been sticky. Buybacks are flexible.

Buybacks are also done to optimise the debt ratio, to minimise the firms cost of capital and thereby maximizing firm value.

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Re:OpenAI and Nvidia Announce Partnership to Deploy 10GW of ... by rhetocj23 on Tuesday September 23, 2025 @01:07PM (#45349908)
Ermm this is nothing but a wealth transfer from the shareholders who sell at too low a price, to those who dont.
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