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AI investors warn of compute overbuild risk as financing ramps up
The warning highlights a potential “dark GPUs” scenario, even as Nvidia pursues plans to mobilize over $500 billion in third-party capital for AI infrastructure.
David Sacks, co-founder of Craft Ventures and co-host of the All-In podcast, said the biggest risk to the AI buildout is not on the demand side, but the possibility of an overbuild of compute that leaves GPUs unused.
In his comments, Sacks compared the situation to “dark fiber” after the dot-com crash, arguing that if there were “dark GPUs,” the problem would cascade for the industry.
Sacks’ remarks come as Nvidia, according to Yahoo Finance, said it signed memorandums of understanding with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to create independent compute financing platforms intended to mobilize over $500 billion of third-party capital for AI infrastructure over time.
The Nvidia disclosure also noted the partnerships remain subject to final agreements, and the outlet emphasized that the $500 billion figure is an aspiration rather than already raised or committed money or Nvidia revenue.