No. of Recommendations: 4
"I don't remember anyone expressing any negatives or worries about the company."

The negative case is not too hard to imagine. The bulk of compute workload (AI included) are moving to a few large cloud providers who operate at the scale where they can run a hardware R&D program to design their own ASICs, which are intrinsically better suited for the workload than GPUs. Google has TPU (Tensor Processing Unit) and Apple is reportedly close to announcing Apple Neural Engine. In terms of other competition, Intel recently purchased Nervana which was also designing a custom ASIC. Even if GPUs are still used in the training phase, it's a smaller part of the AI/ML pie.

Even if that's not the case, they are selling into terrible markets (cloud providers that have lots of leverage over suppliers and automobile components).

On top of that, they are 10x next years estimated sales. Priced for perfection.

Final note: cryptocurrencies have no intrinsic need for mining at all. It exists to gamify network participation by introducing artificial difficult with a large reward in order to increase the number of network participants. If a large retailer or fintech company was to operate it's own private blockchain there's no reason they'd impose artificial constraints on block hashes (which is what requires the GPUs). Anyway, even looking at Bitcoin miners, they've all moved onto ASICs, too.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.