On November 20, 2025, trading algorithms identified what may become the largest accounting fraud in technology history—not in months or years, but in 18 hours.
NVIDIA sells GPUs to Oracle. Oracle sells GPU time to openai.
When time comes to pay the bills, openai doesn’t have the money to pay Oracle who then doesn’t have money to pay NVIDIA. So, Oracle gives stock to NVIDIA, and openai also gives stock to NVIDIA.
NVIDIA doesn’t care if both go broke because now a gpu is worth a lot more, and in the books they’re selling a lot more GPUs each for a lot more money. So NVIDIA stock goes through the roof even if they ran out of cash and got into ridiculous debt.
Shareholders have a ridiculous profit, NVIDIA directors get a massive bonus and NVIDIA CEO gets famous.
Why is it a problem? Because nobody has cash and this can’t go on forever without some massive bankruptcies. I’m sceptical anyone is paying their power bills or servicing bank loans, so these may get dragged into the mud too.
Wouldn’t NVIDIA care? They now own part of the company in exchange for that hardware?
If they go bankrupt, nvidia loses their stake in a company, and it all falls apart. GPUs won’t stay this expensive if this implodes.
OpenAI though, can only go on for as long as their venture capitalists are willing to support it.
I’m not convinced the current LLM architecture can ever make an AGI, but it a can be useful and be made more useful. There could come a point where it’s usefulness and it’s short comings reach a profitable point that people will accept.
What could also help is nvidia being able to come out with more power efficient chips as well. It could go a long way to solving at least one of the problem.
NVIDIA sells GPUs to Oracle. Oracle sells GPU time to openai.
When time comes to pay the bills, openai doesn’t have the money to pay Oracle who then doesn’t have money to pay NVIDIA. So, Oracle gives stock to NVIDIA, and openai also gives stock to NVIDIA.
NVIDIA doesn’t care if both go broke because now a gpu is worth a lot more, and in the books they’re selling a lot more GPUs each for a lot more money. So NVIDIA stock goes through the roof even if they ran out of cash and got into ridiculous debt.
Shareholders have a ridiculous profit, NVIDIA directors get a massive bonus and NVIDIA CEO gets famous.
Why is it a problem? Because nobody has cash and this can’t go on forever without some massive bankruptcies. I’m sceptical anyone is paying their power bills or servicing bank loans, so these may get dragged into the mud too.
Wouldn’t NVIDIA care? They now own part of the company in exchange for that hardware?
If they go bankrupt, nvidia loses their stake in a company, and it all falls apart. GPUs won’t stay this expensive if this implodes.
OpenAI though, can only go on for as long as their venture capitalists are willing to support it.
I’m not convinced the current LLM architecture can ever make an AGI, but it a can be useful and be made more useful. There could come a point where it’s usefulness and it’s short comings reach a profitable point that people will accept.
What could also help is nvidia being able to come out with more power efficient chips as well. It could go a long way to solving at least one of the problem.