The queen of circular financing: $NVDA shelling out 105B to build a datacenter with SB Energy that uses NVDA chips exclusively. OpenAI is supposed to rent it after construction.
[supprimé]
u/Sagronym — 2 days ago
NVIDIA (NVDA) steps on the brake with AI spending, cuts in half AI guarantee commitment to OpenAI!
Nvidia scales back funding guarantee for Ohio OpenAI data center, WSJ reports
>Nvidia has revised its plans to support a proposed OpenAI data center project in Ohio and is now expected to initially guarantee less than $120 billion, down from the $250 billion previously discussed, the Wall Street Journal reported on Friday, ....
The Journal said Nvidia and OpenAI are nearing an agreement, with the chipmaker expected to provide a financial backstop only for the first phase of the project. A deal could be signed as early as this weekend, according to the report.
>• The change was made after investors raised concerns about Nvidia's risk exposure tied to large financing commitments, the newspaper said.
Source: NVidia scales back
The idea behind all this circular financing: The supported Datacenter gets equipped with NVDA tech.
Probably (my opinion) they were getting cold feet about oversize/overcapacity (=>lower profitabliity) and pressure from investors hence they now only backstop the first phase. BTW: NVDA does 80B of stock buybacks each year (which artificially increases stock price and management bonus/shares). If they have so many genius ideas to invest in, why those massive buybacks. That usually only makes sense, if a company has no profitable use for its money. At the same time, they issued a big bond to get financing from capital market. This only makes sense, if you invest in something more profitable than the interest payment. All strange here.
u/Sagronym — 4 days ago
Some ideas on the strange happenings around Hertz
Q2 72026 numbers of HTZ for reference in the link
Additional: Beside the junk bond (maturing 2029) there is another one maturing this year, Dec 1. Vol 750M. has to be repayed then (about 4 months) - would east most of their liquidity position!
Certainly you have noted the big plunge 5->1,5 and the little rebound after numbers. Which spurred hopes of a short squeeze. But you cannot squeeze somebody who owns the stock and has just hedged it - what the put loses gains the stock and vice versa.
Some basic Info. HTZ witha difficult history is loaded with debt (about 18B) and the massive interest payment (about 1B/year) makes it difficult for the management to squeeze out much profit from their revenue (2,4B last quarter). However after many quarters of losses they swung to a little profit lately. Originates in diffcult history, first Chapter 11, then bad decision to invest big in Evs which lost value quickly, so resales lead to massive losses.
Swimming in my favourite lake I got some ideas to make sense of all that happenings around HTZ (Hertz)
Read, think and reflect and comment. Its just ideas, but might explain a bit - e..g the high short quota of which I see mostly as a hedge of institutional holders in a certain scenario – would not make sense otherwise since too risky. Institutional holders with their massive engagement (see Nasdaq link) make the stock price.
Their possible ineterest is laid out in the pic.
u/Sagronym — 11 days ago
Investment styles: Could you imagine Scott Bessent apologizing if the US retail trader loses heavily on leveraged products? Korea is different.
Minister apologizes as Korean leveraged ETF investors nurse heavy losses amid chip stock rout
In the US leverage in retail is considered normal and even at historic heights.
https://www.advisorperspectives.com/dshort/updates/2026/07/20/margin-debt-finra-june-2026
- Millions of little Leopolds in US waiting for uncle Ken to pull the plug of their financial bathtubs?
- In the US this is considered part of the game. Going in levereaged up to the gills, all or nothing. Maybe still the heritage of the wildwest gambling houses? What do you think?
- And, like in the old times of Clondike, the perpetual losses keep the less wealthy, who often lose on leveraged gambling and are subject to FOMO trades, in the eternal threadmill?
- I remember well my first visit on reddit (only visitor - not member) - it was during that first crazy Gamestonk wave some years ago. I saw the ususal mom and pop investors bragging about their buying- throwing in substantial sums. Only they did not buy the stock - they bought options far far out of the money. Probably because it seemed so cheap for them ...
u/Sagronym — 14 days ago