Vivid depiction of a dark scenario for Nvidia. “Indeed, CEO Jensen Huang has been so aggressive in funding the AI ecosystem that the company…

Vivid depiction of a dark scenario for Nvidia. “Indeed, CEO Jensen Huang has been so aggressive in funding the AI ecosystem that the company is functioning almost like a bank; with annual free cash flow nearing $100 billion and little debt, that isn’t obviously reckless. Yet such vendor financing, though it has plenty of precedents, is what brought down Lucent and much of the rest of the telecom equipment industry in the early 2000s after the first dot-com bubble burst. Nvidia’s defenders point out that many of its deals are collateralized by the hardware, so if the company fails Nvidia gets the gear back. In a bust scenario, though, those chips would be worth a fraction of their current value.” https://www.newcomer.co/p/the-abrupt-fall-of-situational-awareness

Source: Gary Marcus (X) | 2026-08-01