Nvidia Allegedly Engineered Scarcity by Funding AI Startups to Buy Its GPUs

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by fartfeatures on Saturday November 14, 2026 @02:53AM (#50494983)

Would it not be extremely foolhardy for a new CEO to start slow rolling things considering the dominant position Nvidia currently finds itself in? Why would they do that? You say yourself it would clearly be a managed decline in that case. Why would an incoming CEO want that? Don't forget their pay would likely be performance related and probably not tied to decreasing the stock price

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Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by CSSer on Saturday November 14, 2026 @03:04AM (#50495042)

I’m pretty naive about this kind of thing, so bear with me, but if your stock is in free fall and you need a new CEO, isn’t there merit in a stabilizing force? No one is ever compensated just for, at least in the near term, stopping the bleeding?

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Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by csallen on Saturday November 14, 2026 @03:27AM (#50495181)

Well the stock is high because shareholders have been predicting massive future growth. If a CEO is going to stabilize the price, that means they have to give investors confidence in the same or at at least similar growth trajectory. Which was aggressive.

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Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by hnlmorg on Saturday November 14, 2026 @04:10AM (#50495380)

Nice analogy but there’s just one problem: it assumes arriving at mars is the end goal. But that’s not how companies seem to operate. They’re about indefinite growth. Which clearly isn’t possible and ends up killing a lot of companies as they eat themselves from the inside just to keep greedy shareholders happy.

There used to be a time when people would invest over the course of decades and enjoy the dividends they received. But these days it’s all just about the short term rewards.

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Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by usrusr on Saturday November 14, 2026 @07:08AM (#50496378)

Tragedy of the stock market: infinity can hit a company even if both management and shareholders are fully committed to modest long term stability (apparently this is absolutely not what happened at nvidia).

A company can get into the sights of "infinity believers" even if they try not to. Infinityists will honestly believe that the stock is a very good buy and whenever a "stability lover" has to sell, they will outbid the next stabilityist. Price goes up, it becomes more visible to infinityists and so on. Eventually infinityist will outnumber stabilityist and management will enter "or die trying" mode on promises they never made. Or be replaced.

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Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by hgomersall on Saturday November 14, 2026 @04:13AM (#50495390)

If they discover tricky shenanigans, they might well announce them publicly to cover their own personal position. At the start, they're not going to have too much invested.

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Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by dylan604 on Saturday November 14, 2026 @06:36AM (#50496183)

Yes, you publicly announce everything now so you can throw it all at the feet of the ousted leader. If not, enough time will pass where blaming the ousted leader looks like excuses for the current one and just looks bad to the public. Look at the current US administration as an example of how the constant blaming of the previous administration played to the public opinion.

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Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by dofm on Saturday November 14, 2026 @09:17AM (#50497205)

Right. One of the weird side effects of the Jensen Huang report hierarchy is that instead of a handful of direct reports that have stories they need to CYA on, there are over sixty of them! This could make the congressional testimony aspect pretty intense.

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Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by hgomersall on Saturday November 14, 2026 @10:20AM (#50497732)

And each has plausible deniability of their personal involvement, since the responsibility is so diffuse below Huang.

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Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by cgio on Saturday November 14, 2026 @04:19AM (#50495432)

That’s a good point. A new CEO never wants a slow unwinding, they go for quick pain to set the baseline of their bonus assessment into something workable.

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