I've been keeping tabs on NVidia’s venture arm. The arm seems to invest massive capital (hundreds of MM) in credible startups focused on compute scaling. These startups then spend back on NVidia chips at a 98% margin. I'd guess that they get back at least .4 to.6 dollars of profit on every such transaction in direct payment. If their are other investor partners, they could get back more than a dollar in profit for every dollar of investment.
While this is a great deal where everyone wins… it can cover unsustainable practices in the market. They can grow revenue like a fractional reserve bank - which would unwind rather quickly if the venture arm ran into trouble.
The creators "invested" in foreign companies that would buy their product. They had realized that $1 of product sold was making them much more than that in the stock exchange...
While this is a great deal where everyone wins… it can cover unsustainable practices in the market. They can grow revenue like a fractional reserve bank - which would unwind rather quickly if the venture arm ran into trouble.