This is more like reinvesting into the business as it's growing. It's a positive sum loop.
Nvidia makes money by selling to OpenAI. OpenAI makes money by selling a service to users that uses Nvidia. So Nvidia invests in the build out and expansion of the infrastructure that will use Nvidia.
This is a classic positive sum loop.
It's not that different than a company reinvesting revenue in growing the company.
But is OpenAI recouping this? I remember seeing reports a year ago that it was in the realm of $700M/mo in inference costs for them - are they earning that now?
Of course the strategy of taking a loss and reinvesting - but I don't see how OpenAI is making enough money to pay for all this, now or in the future.
Nvidia makes money by selling to OpenAI. OpenAI makes money by selling a service to users that uses Nvidia. So Nvidia invests in the build out and expansion of the infrastructure that will use Nvidia.
This is a classic positive sum loop.
It's not that different than a company reinvesting revenue in growing the company.