Azeem Azhar

They are at this point still relatively transparent.

There is a little bit of economic logic.

It's not so much about NVIDIA saying, you're going to buy my chips from me and then I'm going to give you money to do it.

What's happening here is that NVIDIA has the strongest balance sheet and it also has the monopoly on these chips and it really wants to sell a lot.

So in a way, this is a...

almost a logical way of them doing this, particularly as OpenAI, which is the one that needs most of these, is such a young company, it's massively loss-making, and it doesn't have the kind of balance sheet that lends itself to buying these off the cap.

Now, look, that is a very, very positive, Pollyannish reading of what's going on.

But it also is one that you might end up with if you were trying to think,

How do we make sure we don't run out of fuel to meet our customer demand?

I mean, I'm not sure what else you would do if demand is as hot as people claim it is.

Right.

Look, it's quite messy.

The big companies who've had time to build profits and get cash are obviously not needing to do this.

But the younger ones, the Corweaves, which is a new hyperscaler, or OpenAI, need to be able to fund this growth that they're seeing.

And of course, they're going to find more and more spicy ways of doing it.

At this stage, again, just thinking about where we are in the cycle,

These things look exotic rather than poisonous at the moment.

But the question, I think, will be what happens thereafter?

And is there enough transparency?

Can we see what's going on in these SPVs?