Xueba's computing system

Chapter 275 Musk's Helplessness 2
Musk is all too familiar with what’s happening.

NVIDIA's stock price fluctuated normally in the first few days after the market opened, and the overall price remained at a high level of more than US$140. Then, just before the weekend market closed, there was a small dive, and the stock price approached the 140 line.

Then, panic was brewing during the two-day weekend. By this time, Musk had already organized people to test the performance of DS-R1, so he was very sure: the group of bloodthirsty jackals had already ambushed them.

During the two days of the market closure, all kinds of news about DS were flying everywhere, so much so that even the spectators in Dragon Country were a little stunned. Because why the other side was praising DS so much.

At this time, many people in Long Country still did not know about DS. It can even be said that the source of information that many people in Long Country knew about DS came from the other side of the strait.

Overnight, DS seemed to have become a great competitor to OpenAI.

Musk knows very well why those people are working so hard to promote the products of a strong competitor by starting the news machine, because it is profitable to do so.

This is indeed the case. On another Monday after the end of the weekend, NVIDIA's stock price fell by about 17% in one day, and more than 5000 billion US dollars disappeared.

Although stock prices are just data on paper, the Eagle Sauce today relies entirely on these data on paper to support the table. However, NVIDIA evaporated more than 5000 billion in one day, and the annual GDP of most countries on this earth is not that much.

The GDP of a small tyrant that once claimed to be the third largest in the world but was unwilling to live in Southeast Asia is only more than 4000 billion yuan a year. In other words, NVIDIA alone lost the annual GDP of a third-rate small country in one day.

Affected by this, the entire AI sector lost more than US$1 trillion on that day.

They used the early publicity to create panic during the market closure, and immediately joined forces with a number of authoritative institutions to release heavy test results after the market reopened. This is a tried and tested operation of the financial jackals on Wall Street.

Musk also reaped the benefits of this wave of short selling in private.

With a market value of one trillion US dollars, the wealth of so many people suddenly shrunk a lot on this day.

So, why are those people so keen on finance? Because bandits and warlords would cry when they see it, it is a civilized and legal robbery without using weapons, everything is within the legal framework, and it is also impeccable on the moral level. Of course, this morality is packaged.

Lin Yuan also made a lot of money this time.

With a 17x leverage, he made 1.7x profit from a -point loss in NVIDIA's stock price. And he used the account Musk opened for him.

After NVIDIA's stock price plummeted that day, Lin Yuan decisively redeemed the borrowed stocks and stopped holding them in time before the market closed.

There are many reasons why he did this.

First, he had made enough money. He entered the market with 2.7 million US dollars and left with 1.7 million US dollars. He made million US dollars in one day. He finally understood why powerful people love Eagle Sauce so much. Because as long as you have a way to get information, it's really cool.

Secondly, it is because he understands the current national policy of the United States. The survival of AI copyright companies such as NVIDIA is actually related to the future grand strategy of the United States. Therefore, the United States will not sit idly by no matter what. It is just a matter of the timing of intervention.

Finally, it is the most important point.

The lethality of DS-R1 to NVIDIA lies in the fact that its demand for GPU computing power cards is far lower than that of OpenAI's chatGPT.

However, in order to destroy the Eagle Sauce's AI strategy, DS chose open source.

The benefit of open source is that the whole world can participate in the field of AI, which is similar to removing the threshold of AI.

Since there are more participants in AI, even if the demand for GPU computing power cards by a single participant decreases, the total amount will increase.

Therefore, even if the United States’ AI industry is about to be finished, NVIDIA’s GPU computing power cards will still be in the majority in the long run.

This is not the first time that Lin Yuan has played with stocks. He knows very well that NVIDIA's GPU computing power is now the leader in the industry, so those short-selling institutions will sooner or later take advantage of this and go long again. In the long run, NVIDIA's 17-point drop in one day is already scary enough.

Lin Yuan's view is based on a simple understanding - in the long run, the demand for GPU computing cards will definitely increase exponentially after the popularization of AI open source, and the Eagle Sauce will not let NVIDIA's stock price collapse. And NVIDIA will not encounter a rival in the short term.

So, after DS stabbed the Eagle Sauce AI sector, in the long run, it may be beneficial to NVIDIA.

The software represented by openai may die, but the hardware represented by NVIDIA is likely to usher in new opportunities.

Based on this understanding, after Lin Yuan redeemed his stocks, he immediately went all in and bought NVIDIA shares for US$2.7 million.

Although Lin Yuan was not sure whether NVIDIA's stock price would continue to fall, he believed that the stock price would rise again sooner or later. Besides, his 100 million yuan capital was originally a reward from Musk, so he was in a joking attitude.

When a person does not care about losing money when investing in stocks and is just doing it for fun, he can often make the most correct decisions.

Similar to Lin Yuanyingxiong's opinion, Musk also chose to go all in and buy NVIDIA before the market closed that day.

That night, Musk spoke with Lin Yuan.

"Lin, now that I think about it, your shorting of NVIDIA doesn't seem to be a joke. Did you know something in advance?"

"Uh... maybe, who knows." Lin Yuan looked around and avoided the question.

"Thank you for not lying to me. If you had told me that the DS-R1 was garbage when I asked you to test it a few days ago, I would have believed you. You are such a good person."

"Yes, at least I still consider you my friend. I leave the choice of fate in your own hands. I don't like to do things like digging holes and burying people. Fortunately, my friend, you made the right choice."

Musk was silent for a moment. "You have an old saying in Dragon Country: Killing someone destroys their heart. It seems like that's what you're doing now."

"Heart-breaking? Do I have it?"

"There's none?"

"Well, if you think so, then so be it."

"You have uncovered the biggest scar on our side. Asking me to pay compensation would not cause me any serious damage, but you made me choose suicide helplessly."

"Suicide? I don't understand what you're talking about."

"Lin, you know how much I want to make OpenAI a success and how much I want to push it back to open source. But now I am forced to join that group of people and short our country's AI industry.

Although this can make me money. To be honest, I made a lot of money today. I made tens of billions. Just in one day, I had tens of billions of cash. Together with that group of people, I cut a lot of money from all over the world, and I also got a lot of the cake.

But you and I both know that this will overdraw your credit.

Although we don’t have much credit left . . . ”

"Haha, you are so honest." Lin Yuan was amused by Musk's sudden self-deprecation.

The tone on the other end of the phone was helpless, "In addition to the overdrawn credit, our AI industry will also be widely questioned..."

(End of this chapter)