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▽ How AI broke the smart home in 2025  Wed, 24 Dec 2025 12:05:18 GMT
▽ The Nvidia chip borrowing boom Tue, 23 Dec 2025 12:00:13 GMT
Chipwrecked: Can Nvidia avoid the crash? Mon, 22 Dec 2025 18:15:40 GMT
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From: "The Verge" <subscriptions@...
To: [email protected]
Date: Mon, 22 Dec 2025 18:15:40 GMT
Subject: Chipwrecked: Can Nvidia avoid the crash?

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} sup { mso-text-raise:10% } sub { mso-text-raise:-10% }</style> <![endif]--><!--[if true]><style>.forceBgColor{background-color: white !important}</style><![endif]--></head><body class="body forceBgColor" style="background-color:transparent;margin:0;padding:0;-webkit-text-size-adjust:none;text-size-adjust:none"><div class="sailthru-emco-preheader" style="display: none; max-height: 0px; overflow: hidden;">The AI data center build-out, as it currently stands, is dependent on two things: Nvidia chips and borrowed money.</div><div style="display:none"><a href="https://sailthru.com"><img src="https://link.theverge.com/img/6927830d52f971372306c18eppaxu.3pfw/11bc9a7e.gif" alt="" border="0" /></a></div><table class="nl-container" width="100%" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0;background-color:transparent"><tbody><tr><td><table class="row row-1" align="center" width="100%" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0"><tbody><tr><td><table class="row-content stack" align="center" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0;border-radius:0;color:#000;width:500px;margin:0 auto" width="500"><tbody><tr> <td class="column column-1" width="100%" style="mso-table-lspace:0;mso-table-rspace:0;font-weight:400;text-align:left;vertical-align:top"><table class="image_block block-1" width="100%" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0"><tr><td class="pad" style="width:100%"><div class="alignment" align="center"><div style="max-width:500px"><a href="https://link.theverge.com/click/43170978.172940/aHR0cDovL3d3dy50aGV2ZXJnZS5jb20vc3Vic2NyaWJlP3VlaWQ9YmM2MjA3MmM3OWFjN2JlOTkwNDIwZTMzMzVkMGM5NTImYnhpZD02OTI3ODMwZDUyZjk3MTM3MjMwNmMxOGU/6927830d52f971372306c18eBb0905d05" target="_blank"><img src="https://media.sailthru.com/composer/images/sailthru-prod-6xd/VERGE_PREMIUM_PROMO_NWSL_HEADER.jpg" style="display:block;height:auto;border:0;width:100%" width="500" alt=" " title=" " height="auto"></a></div></div></td></tr></table></td></tr></tbody></table></td></tr></tbody></table><table class="row row-2" align="center" width="100%" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0"><tbody><tr><td><table class="row-content stack" align="center" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0;border-radius:0;color:#000;width:500px;margin:0 auto" width="500"><tbody><tr><td class="column column-1" width="100%" style="mso-table-lspace:0;mso-table-rspace:0;font-weight:400;text-align:left;vertical-align:top"><table class="image_block block-1" width="100%" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0"><tr> <td class="pad" style="padding-bottom:5px;padding-top:10px;width:100%"><div class="alignment" align="center"><div style="max-width:500px"><a href="https://link.theverge.com/click/43170978.172940/aHR0cHM6Ly93d3cudGhldmVyZ2UuY29tL2FpLWFydGlmaWNpYWwtaW50ZWxsaWdlbmNlLzg0ODk4OC9udmlkaWEtY2hpcC1sb2Fucy1jb3Jld2VhdmUtZ3B1LWRlYnQtYWktbmVvY2xvdWQ_dWVpZD1iYzYyMDcyYzc5YWM3YmU5OTA0MjBlMzMzNWQwYzk1MiZieGlkPTY5Mjc4MzBkNTJmOTcxMzcyMzA2YzE4ZQ/6927830d52f971372306c18eB25a79c9e" target="_blank"><img src="https://media.sailthru.com/fss/fllmpj/dd2985e7-41de-43ad-b62d-7a282d5d1c41/chipwrecked.png" style="display:block;height:auto;border:0;width:100%" width="500" alt title height="auto"></a></div></div></td></tr></table><table class="text_block block-2" width="100%" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0;word-break:break-word"><tr><td class="pad" style="padding-bottom:5px;padding-left:10px;padding-right:10px;padding-top:5px"><div style="font-family:Arial,sans-serif"><div class style="font-size:12px;font-family:'Helvetica Neue',Helvetica,Arial,sans-serif;mso-line-height-alt:14.399999999999999px;color:#000;line-height:1.2"><p style="margin:0;text-align:center;mso-line-height-alt:14.399999999999999px"><span style="word-break: break-word; font-size: 26px;"><strong><a href="https://link.theverge.com/click/43170978.172940/aHR0cHM6Ly93d3cudGhldmVyZ2UuY29tL2FpLWFydGlmaWNpYWwtaW50ZWxsaWdlbmNlLzg0ODk4OC9udmlkaWEtY2hpcC1sb2Fucy1jb3Jld2VhdmUtZ3B1LWRlYnQtYWktbmVvY2xvdWQ_dWVpZD1iYzYyMDcyYzc5YWM3YmU5OTA0MjBlMzMzNWQwYzk1MiZieGlkPTY5Mjc4MzBkNTJmOTcxMzcyMzA2YzE4ZQ/6927830d52f971372306c18eC25a79c9e" target="_blank" style="text-decoration: none; color: #5200ff;" rel="noopener"><span style="word-break: break-word;">Chipwrecked: Can Nvidia avoid the crash?</span></a></strong></span></p></div></div></td></tr></table></td></tr></tbody></table></td></tr></tbody></table><table class="row row-3" align="center" width="100%" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0"><tbody><tr><td><table class="row-content" align="center" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0;border-radius:0;color:#000;width:500px;margin:0 auto" width="500"><tbody><tr><td class="column column-1" width="25%" style="mso-table-lspace:0;mso-table-rspace:0;font-weight:400;text-align:left;padding-left:10px;padding-right:10px;padding-top:5px;vertical-align:middle"><table class="image_block block-1" width="100%" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0"><tr><td class="pad" style="padding-bottom:5px;width:100%"><div class="alignment" align="right"><div style="max-width:105px"><img src="https://media.sailthru.com/composer/images/bazh/hl2fkmfb/z5u/8l9/pla/BLURPLE_STAFF_NEWSLETTERS_0006_LIZ.png" style="display:block;height:auto;border:0;width:100%;border-radius:999px" width="105" alt title height="auto"></div></div></td></tr></table></td><td class="column column-2" width="75%" style="mso-table-lspace:0;mso-table-rspace:0;font-weight:400;text-align:left;padding-bottom:5px;padding-top:5px;vertical-align:middle"><table class="paragraph_block block-1" width="100%" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0;word-break:break-word"><tr><td class="pad"><div style="color:#202020;direction:ltr;font-family:Helvetica Neue,Helvetica,Arial,sans-serif;font-size:16px;font-weight:700;letter-spacing:0;line-height:1.2;text-align:left;mso-line-height-alt:19px"><p style="margin:0"><strong>Elizabeth Lopatto</strong></p></div></td></tr></table><table class="paragraph_block block-2" width="100%" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0;word-break:break-word"><tr><td class="pad"><div style="color:#202020;direction:ltr;font-family:Helvetica Neue,Helvetica,Arial,sans-serif;font-size:12px;font-weight:400;letter-spacing:1px;line-height:1;text-align:left;mso-line-height-alt:12px"><p style="margin:0">SENIOR REPORTER</p></div></td></tr></table></td></tr></tbody></table></td></tr></tbody></table><table class="row row-4" align="center" width="100%" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0"><tbody><tr><td><table class="row-content stack" align="center" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0;border-radius:0;color:#000;width:500px;margin:0 auto" width="500"><tbody><tr><td class="column column-1" width="100%" style="mso-table-lspace:0;mso-table-rspace:0;font-weight:400;text-align:left;vertical-align:top"><table class="paragraph_block block-1" width="100%" border="0" cellpadding="0" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0;word-break:break-word"><tr><td class="pad" style="padding-bottom:15px;padding-left:10px;padding-right:10px;padding-top:15px"><div style="color:#202020;direction:ltr;font-family:Helvetica Neue,Helvetica,Arial,sans-serif;font-size:16px;font-weight:400;letter-spacing:0;line-height:1.5;text-align:left;mso-line-height-alt:24px"><p style="margin:0;margin-bottom:16px"> The AI data center build-out, as it currently stands, is dependent on two things: Nvidia chips and borrowed money. Perhaps it was inevitable that people would begin using Nvidia chips&nbsp;<em>to</em>&nbsp;borrow money. As the craze has gone on, I have begun to worry about the weaknesses of the AI data center boom; looking deeper into the financial part of this world, I have not been reassured.</p><p style="margin:0;margin-bottom:16px"> Nvidia has plowed plenty of money into the AI space, with more than 70 investments in AI companies just this year, according to PitchBook data. Among the billions it’s splashed out, there’s one important category: neoclouds,&nbsp;as exemplified by CoreWeave, the publicly traded, debt-laden company premised on the bet that we will continue building data centers forever. CoreWeave and its ilk have turned around and taken out debt to buy Nvidia chips to put in their data centers, putting up the chips themselves as loan collateral — and in the process effectively turning $1 in Nvidia investment into $5 in Nvidia purchases. This is great for Nvidia. I’m not convinced it’s great for anyone else. </p><p style="margin:0;margin-bottom:16px"> There has been a lot of talk about the raw technical details of how these chips depreciate, and specifically whether these chips lose value so fast they make these loans absurd. While I am impressed by the sheer amount of nerd energy put into this question, I do feel this somewhat misses the point: the loans mean that Nvidia has an incentive to bail out this industry for as long as it can because the majority of GPU-backed loans are made using Nvidia’s own chips as collateral.</p><p style="margin:0;margin-bottom:16px">Of course, that also means that if something goes wrong with Nvidia’s business, this whole sector is in trouble. And judging by the increasing competition its chips face, something could go wrong soon.</p><p id="can-startups-outrun-chip-depreciation-and-is-it-happening-faster-than-they-say" style="margin:0"></p></div></td></tr></table><table class="button_block block-2" width="100%" border="0" cellpadding="10" cellspacing="0" role="presentation" style="mso-table-lspace:0;mso-table-rspace:0"><tr><td class="pad"><div class="alignment" align="center"><a href="https://link.theverge.com/click/43170978.172940/aHR0cHM6Ly93d3cudGhldmVyZ2UuY29tL2FpLWFydGlmaWNpYWwtaW50ZWxsaWdlbmNlLzg0ODk4OC9udmlkaWEtY2hpcC1sb2Fucy1jb3Jld2VhdmUtZ3B1LWRlYnQtYWktbmVvY2xvdWQ_dWVpZD1iYzYyMDcyYzc5YWM3YmU5OTA0MjBlMzMzNWQwYzk1MiZieGlkPTY5Mjc4MzBkNTJmOTcxMzcyMzA2YzE4ZQ/6927830d52f971372306c18eD25a79c9e" target="_blank" style="color:#ffffff;text-decoration:none;"><!--[if mso]> <v:roundrect xmlns:v="urn:schemas-microsoft-com:vml" xmlns:w="urn:schemas-microsoft-com:office:word" 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