Dylan Patel

The timing is not exactly that, but they spend $50 billion on the data center, 35 goes into NVIDIA, NVIDIA's gross margin is 75%.

So, you know, again, I'm gonna make it simple numbers.

Let's say it's 10 and 40, 10 billion COGS, 40 billion revenue, $30 billion of gross profit.

If we fix the numbers, it's effectively like half their gross profit from that deal is going directly to OpenAI in the form of equity investment.

The 25% that's COGS, NVIDIA is paying for that.

And then they keep the other half of the gross profit on their balance sheet or do buybacks, whatever they want to do with it.

So NVIDIA is not necessarily like, they are like round tripping some of this.

What effectively is happening is OpenAI gets the opportunity to pay for a big chunk of it in equity.

And NVIDIA is lowering their prices without lowering their prices effectively.

And they're getting ownership of a company.

But NVIDIA comes out great because they're getting the CapEx dollars up front.

So all they're really doing is they're saying half of my money that's in this, sure, it does make its way to me somehow.

But in reality, I still made half of that gross profit.

And the other half is equity in a company that may or may not be worth something, a company that may or may not be able to pay hundreds of billions of dollars of compute deals that they've signed, in which case they'd be bankrupt.

So the thing I like to call it is tokenomics.

I stumbled upon the word, actually, it's like a crypto world.

You kill off crypto, finally, once and for all.

So I'm trying to make tokenomics SEO direct to, you know, us talking about tokenomics and then hopefully you talking about tokenomics.

Hopefully, like, everyone's using the word tokenomics.

Yeah, yeah, yeah.