More Tales From Nvidia: More Funny Business (Issue #273!)
Back to the fundamentals, as Anthropic apparently starts their road show, which I would call “WeWork Part Deux.”
Remember, as I wrote before, WeWork cut their valuation 3x, still couldn’t get it done, and then eventually ended up bankrupt. And in my view, WeWork and Adam Neumann had better governance and were a better deal, for a variety of reasons. And that was before everything started coming undone and prior to policy heading in the wrong direction and prior to the head of the central bank of Nvidia, who is also financing them, was caught canoodling with a Chinese spy.
This is why it does not work. This is not dot-com or railroads. The $ are being spent on an incredibly dis-economic technology that will decay as opposed to sticking around. This is rapidly depreciating immature broken software and compute that is the equivalent of UNIX, SPARC, and VAX or a Mainframe.
Then, the more they are spending, the less they are getting. It is sort of like the impact of every incremental dollar of debt on GDP, very diminishing marginal returns. There is no scaling. If the underlying technology does the opposite of scaling, the business cannot scale.
Said simply, cost per unit is going way up (Anthropic’s S-1 tells you this too), revenue per unit is plummeting. See this tweet and subtweet:
More on Jensen the China lobbyist:
https://garymarcus.substack.com/p/jensen-is-cooked
From Culper Research:
culperresearch.com/wp-content/uploads/2026/05/Culper_NVDA_5-13-2026.pdf
Post Script
The latest revelation from The New York Times is quite interesting.
Nvidia Spy Scandal Widens: Feds’ Megaspeed Probe Was Derailed After Nvidia Came Knocking
Nvidia’s Board investigation = Try to buy everything (IMHO).
A bonafide investigation is needed as this is a big deal.
Moreover, I was under the impression that SI is a national security issue (see the previous “More Tales)….
How does one do a real investigation — as it sounds like the investigators wanted this all buried too. I suspect because Jensen Huang was telling the White House the stock market depends on Nvidia (or the White House was inferring that or both), so let me put as many chips in as many places as possible to keep it going!
Position: None
