News for hackers. Stuff that matters.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by u1hcw9nx on Saturday November 14, 2026 @03:50AM (#50495294)
This is third source reporting. WSJ does the original, Wccftech reports that WSJ reports, now Techpowerup reports what Wccftech reports about WSJ reporting.

ORGINAL is the best. It tells completely different story better (not a weird twist where CEO trying to increase sales and price of their product is suspect)

Before His Ouster, Jensen Huang Belittled the Executive Replacing Him Interim CEO Colette Kress has questioned some Huang dealmaking. He called her ‘a deer in the headlights.’https://wallhop.io/https://www.wsj.com/tech/jensen-huang-col...?

https://wallhop.io/https://www.wsj.com/tech/jensen-huang-col...?

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by u1hcw9nx on Saturday November 14, 2026 @04:09AM (#50495372)
Stuff I did not know:

(circular financing)

>Huang had launched a dealmaking spree and was now starting to question whether it had gone too far, according to people familiar with the matter.

(neopotism, Huang’s son-in-law, Nico Caprez)

>Huang’s son-in-law Caprez and another vice president Raj Mirpuri told prospective business partners that Nvidia could arrange credit-support deals within a couple of weeks. Dozens of companies lined up for this program, hoping Nvidia’s backing would lower their borrowing costs. In exchange for providing credit support, Nvidia proposed that cloud providers share a cut of their revenue.

>Behind the scenes, she [Kress] tried to rein in Huang’s son-in-law, who had been promoted to a vice president in January, people who worked with her said.

(...)

>By October, Nvidia started to turn off the tap.

> [Story about Japanese Soup vendor] The soup-man doesn’t sell out all his inventory to one or two customers, but instead keeps prices high and his customer base diverse, the CEO said.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by thatsabadlook on Saturday November 14, 2026 @05:49AM (#50495935)
People have been mentioning about how all of ai is a circular financing scheme for months. Anthropic, openai, meta, etc. they all have been meeting with one another and making really insane deals. I am curious what the details are specifically, but I am shocked to find that anyone let this go on this long and only now decided to act.

It would be historically entertaining if all the ai hype crowd found out they have been hyping a ccp scheme to crash the us economy to the point where even the military was cheering it on. But the truth is, this is just how business works now that billionaires and trillionaires can do what they want.

I want what's best for the US but acting this slowly puts any meaningful repercussions for this behavior into the realm of theatrics rather then lessons learned. Oh well I guess some people got really wealthy so we should all be cheering while the price of food and everything else is insane.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by dylan604 on Saturday November 14, 2026 @06:28AM (#50496146)
Who decided to act? Some dirt that everyone thought was swept under the rug leaked, and now everyone can see how much of a dirt bag Jensen is. It's looking to me like the house that Jensen built is just a bit less raggedy than a house of cards built on sand on top of an active fault line. The news of these deals isn't a recent revelation. The recent news is that there's possible skirting of laws by the company led by a philanderer at best with one of his trysts being with a foreign spy. There is no good light to paint this.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by enoint on Saturday November 14, 2026 @08:47AM (#50497008)
Such an important company, with no succession plan. He had 60 direct reports.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by torginus on Saturday November 14, 2026 @06:29AM (#50496153)
Why CCP? That Nvidia has been irking Wall Street bankers by acting like a bank has been public knowledge for quite a while. What Nvidia did is instead of selling their GPUs for $10, they sold them for $100, with very favorable terms over a long time, creating lots of (cheap) debt for others, who were mainly datacenter companies, who could then pay off the loans and rent out the GPUs at razor thin margins.

This scheme had pissed off bankers that a company muscled in on their turf, created lots of debt in a time when US debt was already sky high and becoming unpopular, relied on GPU depreciation being low (implying tech progress was slow, which didn't gel with the singularity crowd), and getting crazy rich in the process.

I don't even know how China factors into this other than competing with the US

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by mr_toad on Saturday November 14, 2026 @07:56AM (#50496658)
> This scheme had pissed off bankers that a company muscled in on their turf

Weird if true, because businesses having a side-line in financing their customers is extremely common. Most large retailers, car dealers etc all do it. Sometimes they outsource to a third party, but sometimes they do it all in house. In a few cases they end up making more money as a finance company than the business they started in.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by retwakm4 on Saturday November 14, 2026 @08:06AM (#50496722)
Yeah, but at this scale, it's mostly banks and private equity and other finance companies, right? Like, funding enormous data centers type debt?

I've seen it be done with consumers and small B2B but not big giant business finance like this before.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by Geezus_42 on Saturday November 14, 2026 @08:19AM (#50496800)
I remember hearing about a large US company that had a financing arm that was way bigger than the primary business they were known for.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by Merrill on Saturday November 14, 2026 @08:46AM (#50497000)
GE Capital during the 2008 financial crisis?
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by Geezus_42 on Saturday November 14, 2026 @09:27AM (#50497272)
That's the one I was think of.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by Nursie on Saturday November 14, 2026 @08:52AM (#50497042)
Might have been IBM at some points in the past, unsure these days.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by DANmode on Saturday November 14, 2026 @08:24AM (#50496827)
> I am curious what the details are specifically

So are most of the shareholders: most of this crap is off of the balance sheet until (if) it comes online!

In the first nine months of 2026, Microsoft, Amazon, Alphabet, Meta, and Oracle spent $556.9 billion on capital expenditures against $542.9 billion in operating cash flow, leaving their combined quarterly at -$33 billion.

Off-balance-sheet AI obligations across MSFT, AMZN, GOOGL, META, and ORCL are roughly $3.2 trillion (nearly six times capex).

Oracle is doing cute stuff like locking itself into 15 to 19 year facility leases while only signing customer contracts lasting up to five years. Some sites, they can’t even finish building.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by poopingatwork on Saturday November 14, 2026 @08:50AM (#50497030)
It's easy man, just get out there and educate the masses so they can see things your way.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by panny on Saturday November 14, 2026 @06:36AM (#50496186)
>Stuff I did not know:

>(circular financing)

How? This was common knowledge many months ago. Oh, right. Filter bubble. Like this video, which explains the insanity. 3 updoots.

https://news.ycombinator.com/item?id=47306898

I guess if you only read a silicon valley cheerleading site like this one, you may be blindsided by the facts.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by onevsall on Saturday November 14, 2026 @05:29AM (#50495829)
Circular reporting about circular financing
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @05:29AM (#50495830)
Honestly, terrible reporting all around this issue, especially by NYT and WSJ. Then all the other news sources repeated the same lies.

- Singapore govt issued a statement clarifying that WSJ fabricated facts. [1]

- It's been clarified now by the President's Council of Advisors on Science and Technology that there is no convincing evidence that Alice Huang is a spy. [2]

- The statement that Jensen called the new interim CEO ‘a deer in the headlights’ actually hurts NVDA stock, as it lowers the confidence of investors in her and I'm sure WSJ knew that before posting this speculative article with no cited source.

This looks like a hit job on Jensen and Nvidia. NYT and WSJ have spewed false facts with no credible sources (just "anonymous" sources) to discredit Jensen as much as possible and hurt NVDA stock. Jensen probably cheated on his wife, but mere cheating is not grounds to remove a very competent leader from the company he created.

[1] https://www.mha.gov.sg/media-room/newsroom/clarification-sta...

[2] https://x.com/DavidSacks/status/2121070881258504395

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by youngtaff on Saturday November 14, 2026 @05:40AM (#50495895)
Why would anyone believe anything David Sacks says?
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by fl0id on Saturday November 14, 2026 @05:52AM (#50495954)
Or the current admin, which could very well be involved.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @06:41AM (#50496214)
He's an official and he cites other officials, including a Democrat official. Singaporean officials have also debunked the false statements of WSJ.

If you still prefer to be a clown, you can keep believing the publications with no sources cited instead.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @06:41AM (#50496206)
Because he's an official, and he cites other officials, including a Democrat official. Singaporean officials have also debunked the false statements of WSJ.

Why would you believe some publications with no official sources cited? Sounds like you'd be a clown.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by SmirkingRevenge on Saturday November 14, 2026 @07:15AM (#50496430)
Yea no one should take anything Sacks says as reliable.

He’s an administration shill and is a constant source of disinformation, especially on things like Russia and ukraine

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @07:17AM (#50496438)
He's an official and he cites other officials, including a Democrat official. Singaporean officials have also debunked the false statements of WSJ.

If you prefer to be a clown, you can keep believing the publications with no sources cited.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by sobellian on Saturday November 14, 2026 @12:12PM (#50498677)
The public has insufficient information to determine one way or another. Investigations will abound. You seem to cite Himes everywhere as a rebuttal but he says he doesn't know. That is the safe epistemological position. You go much further in calling it a hit job and have been toxic throughout this thread calling people clowns who lack critical thinking. I suggest humility in the face of uncertainty.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @12:31PM (#50498901)
> The public has insufficient information

Agreed, hence I think public outrage is unjustified

> Investigations will abound

Great, we're all curious

> You seem to cite Himes everywhere as a rebuttal but he says he doesn't know

As he came out of the intelligence briefing about Alice Huang, while in the hallway he was asked whether Alice is a spy and he said he doesn't know. Clearly he was not presented with irrefutable evidence or strong facts in that meeting with all the big shots of the intelligence apparatus, that's for sure.

> You go much further in calling it a hit job

Look at how coordinated this story with "anonymous sources" has been, it's blatant

> have been toxic

I presented arguments and cited sources in my initial comment. The rebuttal people came up with was "the guy that said there is no evidence is from the side I don't like grrrrrrrr". That is clownish actually.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by sobellian on Saturday November 14, 2026 @02:15PM (#50499872)
The sources you cite do not prove your claim that it's a hit job. That's just as unsubstantiated by evidence as the claim she's a spy. So don't throw stones from glass houses. There are ways to intelligently discuss this without ad hominem.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @02:45PM (#50500116)
> do not prove your claim that it's a hit job

Of course, anything short of an official statement from The Supreme Court will not suffice, right?

> So don't throw stones from glass houses

You haven't proven anything yourself or added any valuable information to the discussion. Anyway, lecture away about ad hominem if it makes you feel morally superior.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by sobellian on Saturday November 14, 2026 @03:24PM (#50500459)
I just want to help keep HN discussion high quality with less trolling, it really has nothing to do with morals. I don't understand the hostility.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @04:27PM (#50501033)
You're the only one trolling here
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by dns_snek on Saturday November 14, 2026 @05:45AM (#50495913)
[delayed]
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by thatsabadlook on Saturday November 14, 2026 @05:56AM (#50495970)
Good reminder. It wouldn't surprise me if she was or wasn't. They decided now was the time to torch jensen, shortly after POTUS met with xi xingping.

The moves jensen made by selling gpus to China illegally in a sense kept thaiwan safer from invasion. Now all this China spy news is going down and in the same week China says it's taking thaiwan again. China does always say that, but maybe this is their way of saying "we aren't getting what we want anymore". Lots of stolen GPU shipments in the last month too. Hard to say.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @06:44AM (#50496227)
Sacks cites other officials, including a Democrat who says that he has not seen any convincing evidence.

Jensen is an advocate for open source models and wants the whole humanity to benefit from AI, not just the US. Maybe that's what took him down. Anyway, it's clearly a coordinated hit job.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by yubblegum on Saturday November 14, 2026 @09:10AM (#50497163)
> it's clearly a coordinated hit job.

I am beginning to think the hamhanded manner of this takedown is itself signal to politically vulnerable players. When the public sphere of society has become so vulgar and crass (starting from the top potus) we can only wonder at the level of vitriol and jungle means that happens behind the scenes in semi private.

Jensen Huang is being crucified merely by newspaper articles and innuendos. And the level of social misbahavior by this poor schmuck who happned to land in the society circle of world class SHARKS is so pathetic compared with Epstein norms of these same elite (media, academia, industry, financy, tech, government, all Epstein friends) that it is stupid of us in general public to go along with this.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by thatsabadlook on Saturday November 14, 2026 @10:47AM (#50497948)
I'm not a big jensen fan but I agree. So all these other CEOs have affairs and we are supposed to men will be men them and revere it. But jensen has them and oh he is the bad one. My God look at any other tech CEO. They all suck way worse then affairs do. Why don't we focus on the stuff that matters. Jensen sucked for other reasons and was better then other tech ceos in other ways.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @10:51AM (#50497981)
All those guys are on TRT, that's basically a medical prescription to have affairs
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @10:49AM (#50497964)
Agreed, the public has been far too quick to crucify Jensen based on unproven allegations. In a world where been others have done much worse and haven't seen this level of backlash, it's an open question why Jensen was targeted and why now.

Jensen was never briefed by the intelligence agencies that he should cut ties with Alice, so he was never given the chance to sort things out quietly.

I see 3 potential orchestrators behind this hit job/"leak":

1. A foreign state actor, adversary of US (like China)

2. Ideological fundamentalists, either:

- Anti-AI/anti-capitalism Marxist types

- People that want to see AI nationalized or brought fully under Government control

- Dem official (elected or unelected) that wants to bring down the economy while it's run by the other side

3. A "China hawk" type inside the current Administration that wants to use this scandal to push legislation to track by GPS all SOTA chips and have a remote kill-switch controlled by Washington

I think either option 1 or option 3 are more likely, I hope we'll find out more in the next weeks.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @06:38AM (#50496195)
What a good excuse to believe some publications with no sources cited versus actual officials (US officials and Singaporean officials). A clown costume would be fitting.

Anyway, the Dems have the exact same position as the Republicans, that there is no convincing evidence: "Rep. Jim Himes (D-Conn.), the likely incoming chair of the House Intelligence Committee, is unsure whether a business executive who cultivated close ties with Nvidia chief executive Jensen Huang is a Chinese spy, based on information he received from U.S. intelligence officials in a classified briefing earlier this week." [1]

The accusations made by WSJ, NYT and Economist have proven baseless so far, hence my point that this is a hit job.

[1] https://www.yahoo.com/news/politics/articles/top-intel-dem-u...

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by dns_snek on Saturday November 14, 2026 @08:27AM (#50496853)
[delayed]
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @08:47AM (#50497005)
Ok, so you just love a conspiracy theory and don't care about any facts.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by dns_snek on Saturday November 14, 2026 @10:13AM (#50497666)
[delayed]
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @11:06AM (#50498115)
Why are you so quick to condemn someone based on publications with "anonymous sources" or no sources at all? Just grow up man. The media just makes up facts all the time.

> You're also misrepresenting statements, "unsure" does not mean "no".

The Democrat came out of the intelligence briefing and in the hallway he was asked whether Alice is a spy and he said he doesn't know. Does it sound to you like strong evidence was presented to him? Does it sound like he saw irrefutable facts? Think logically.

> I'm just pointing out that dismissals from a few untrustworthy individuals

Singaporean Government came out and clearly said WSJ made up facts. Both the Republicans and Democrats are saying they haven't see convincing evidence. You still prefer to believe WSJ/NYT/Economist based on "anonymous sources"?

Do you lack critical thinking at all?

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by leoc on Saturday November 14, 2026 @01:03PM (#50499220)
One complication here is that the whole spy-or-not distinction is far from clear-cut. One issue is that (IIUC: I'm not an expert) there's a murky distinction between "real" spies involved with spying for classified intelligence, sabotage and assassination and the like, and agents of influence who may restrict themselves to buttering up powerful people. Another is that if you're a China-based Chinese citizen like Alice Huang and one day the Chinese security services turn up out of the blue and ask you to tell then what you know about this or try to persuade someone else to do that, what are you going to do? So it may be possible to give different answers to the question without anyone outright lying.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by extraextra on Saturday November 14, 2026 @01:34PM (#50499507)
Fair points

P.S.: To any Chinese spies in this thread: I'm full of secrets, DM for address

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by armcat on Saturday November 14, 2026 @05:47AM (#50495922)
Wallhop doesn't work for WSJ anymore, here is the alternative: https://archive.is/20261113091227/https://www.wsj.com/tech/j...
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by sgerenser on Saturday November 14, 2026 @06:51AM (#50496267)
I was able to read the whole article from the wallhop link.
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by dastardly45 on Saturday November 14, 2026 @05:53AM (#50495960)
Major cloud providers were running away from Nvidia, making plans to use alternative chips and lessen their reliance on the firm. Even worse, Huang said, the vast supply of chip wafers and memory Nvidia had committed to buying were coming at him like an “avalanche.” https://archive.is/20261113091227/https://www.wsj.com/tech/j...
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by rob on Saturday November 14, 2026 @07:51AM (#50496626)
[delayed]
Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by DANmode on Saturday November 14, 2026 @08:40AM (#50496952)
or change your expectations on what authoritative journalism is, where it can be from.

Those people need to be paid, too, but the options are way more flexible and accessible.

Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu... by maerF0x0 on Saturday November 14, 2026 @12:23PM (#50498792)
> He called her ‘a deer in the headlights.

if this is true the stock swing might be a reasonable reaction to the uncertainty of a massive directional change for NVidia. And maybe too late given the hyperscalers have had enough time to start pursuing their own chips.