Bill Gurley

And, you know, you can go back to the very first deal, which was Microsoft and OpenAI, and there were credits involved.

So

You get equity for credits, and then those credits are used to run workloads on Azure.

That is cashless revenue for Microsoft.

Just think about it.

There's zero cash flow whatsoever, and they're booking revenue.

That's just, at the very least, it's very low quality revenue.

And I don't know why the auditors didn't get in front of it.

I suspect when and if there is a reset, they'll all of a sudden become awakened and they'll change the rules and it won't be allowed in the future.

But it's bad accounting.

Like, it shouldn't be happening.

And it's unfortunately happening, you know, across the spectrum.

Like, all of the major players are doing it.

And you ask, what do they say?

I mean, people have asked them.

They say, well, it's not material.

And I say, well, if it's not material, you shouldn't do it because it's causing concerns that I think is hurting.

People want to...

understand why the NVIDIA multiple won't go higher.

I think it's the circular deals.