Economist Peter Schiff highlighted parallels between Nvidia Corp.’s (NASDAQ: NVDA) decision to invest $100 billion into OpenAI, the company behind ChatGPT, and the U.S. government’s ever-increasing reliance on foreign debt.
NVDA is in positive territory. Get the complete analysis here.
Throwing ‘Good Money After Bad’
On Thursday, in a post on X, Schiff said, “Nvidia is doing with ChatGPT what the world does with the U.S.,” which is, “they loan us money, so we can buy their goods.”
Schiff is referring to the fiscal model where countries such as Japan and China accumulate U.S. Treasuries in order to finance American consumption of their exports. This is similar to Nvidia’s investment in OpenAI, with the latter expected to splurge on Nvidia’s GPUs to power its massive AI buildout.
Read more…
