Hacker News Reader

Comment by Noaidi | Hacker News Reader

Why are you ignoring the $80.7 Billion loss?

$72 billion of this $80.7 billion loss consists of non-cash accounting charges— related to convertible debt—triggered by a surge in the company’s valuation.

The hardware related liabilities are staggering.

AI psychosis is real.

View on HN

That's sort of a paper loss though. E.g. they made an agreement to give X% of stock for something, and now the stock has gone up a ton, so that X% of stock is worth a lot more than when they made the agreement. For accounting reasons this gets parsed as a loss. But they're still "paying" that same X% of stock, so it's not cash out the door.

Maybe not great, but a good problem to have if it means your stock is skyrocketing.

> $72 billion of this $80.7 billion loss consists of non-cash accounting charges— related to convertible debt—triggered by a surge in the company’s valuation.

Explain what you think this means.

It means that $72 billion will further dilute the stock price when the debt turns into stock.

It is pump and dump in action.

That is very much not what "pump and dump" means.

I don't think you understand what you quoted. The reason for that loss is because their valuation skyrocketed. If I promise you 1% of my million dollar house, and then the price of my house grows 100x. On paper, I now owe you .99 million more dollars than I owed you before, but that doesn't mean I lost cash.

This is not what "AI psychosis" colloquially refers to. Few people have any firm opinions about the nature of cost accounting on LLM products.

They are getting high off their own supply.

Reply on news.ycombinator.com