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Hi, I'm Ed Zittron, and welcome back to Better Offline.

Better Offline

And this is our third and final part of our Better Offline Invidia special, where we're talking about, well, the shakiness behind its growth and how the company, despite being on incredibly infirm ground, is definitely not Enron or Nortel or Worldcom or Lucent,

or any other dot-com bubble-eer firm that imploded under its own way and, well, quite dodgy accounting.

The thing is, even if Enron is nothing like them, there's still quite a few causes for concern,

and that's largely driven from the fact that

Nvidia makes the majority of its money selling GPUs to a handful of customers, and so,

well, some of those also look to be on some of their own incredibly shaky ground, and yeah,

I'm talking about Oracle. Now, Nvidia's health, saying nothing of its growth, isn't just tied to

these customers.

It's also tied to whether these customers can actually turn a profit from their CAPEX spending,

and even that's not even certain.

So, due to the fact that so much money has been piled into building AI infrastructure,

and Big Tech has promised to spend hundreds of billions of dollars more in the next year,

Big Tech has found itself in a bit billions of dollars more in the next year.

Big Tech has found itself in a bit of a hole.

How big of a hole?

Well, by the end of the year, Microsoft, Amazon, Google and Meta will have spent over $400 billion in capital expenditures,

much of it focused on building AI infrastructure on top of $228.4 billion in CAPEX in 2024 and around $148 billion in capital expenditures in 2023 for a total of $776 billion in the space of three years.

...