Spooky season deals on new books! Get 'em while they're hot! Get 'em while they're cheap! Just get 'em, because I have animals to feed! ::gestures elaborately to this link::
Well, the direct "AI" stuff has been a bubble for a long time. This is the "AI" bubble sucking in otherwise sound companies looking to make a quick buck. What it means is that the impact radius when this blows up could be huge.
Where things get weird for Broadcom is when they start doing capital expenditures to ramp up production for chips that don't sell. And then there's the knock on effect of other companies trying to keep up with the "fake" profits here. It easily starts warping the markets. 2/2
I don't think that's _quite_ true. Broadcom has plenty of (financial engineering) reasons to do a deal like this even if they never expect to get paid by OpenAI, or deliver chips to them. It looks good on paper, and that has stock market impact and they can make money on that. 1/2
![Comic. [Giant balloon reminiscent of a hot air balloon but wavy and laying on the ground with “bloop” “bloop” sound effects. Two people are in a basket attached to one end of the balloon.] [caption] Hot water balloon rides turn out to be significantly less romantic than the air kind.](https://cdn.bsky.app/img/feed_thumbnail/plain/did:plc:cz73r7iyiqn26upot4jtjdhk/bafkreiekfxpa7ftvzd2xpsuyjv5czmrpb5ihpmvnhj3ug5gadsrbbybx6m@jpeg)
