Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu...
by ElProlactin on Saturday November 14, 2026 @07:33AM
(#50496541)
> And why couldn't a single number be calculated for this? They know their portfolio companies, their investment amounts, and the portfolio company purchases of their products.
They probably could calculate it but they're not required to and, if we're being honest, they probably don't have an incentive to.
> These are generally good things to look at for all corporate investments.
They are, but the issue with Nvidia is that the web of customer relationships, equity investments, financing, backstops, etc. is very hard to untangle. Not every counterparty is publicly-traded, and even when they are, not every aspect of their business that would go into this sort of due diligence is necessarily required to be reported.
And why couldn't a single number be calculated for this? They know their portfolio companies, their investment amounts, and the portfolio company purchases of their products.
> There are also the questions of the revenue and revenue quality of the companies Nvidia has invested in, how much debt they've taken on, what sort of backstops/guarantees Nvidia has given them, etc.
These are generally good things to look at for all corporate investments.
The main takeaway is that Nvidia investing in their own customers isn't inherently a bad thing. Investing in a poorly performing company is a bad thing.