Slowly, then suddenly – SoftBank has exited its entire Nvidia position, a move that suggests big money is rotating out

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What happens when the excitement fades and the people left holding shares never meant to be long term investors cannot exit?

SILICON VALLEY’S $170 BILLION LIE: THE ACCOUNTING FRAUD HIDING IN PLAIN SIGHT

They are calling it innovation. The SEC filings call it something else.

META, Microsoft, Google, Amazon, Oracle: five titans quietly extended server depreciation from 3 years to 6 years between 2022-2024. Audited. Legal. Disclosed in footnotes nobody reads.

Here’s what that means in English: $400 billion spent annually on Nvidia GPUs that become obsolete every 12 months, depreciated as if they’ll generate cash for six years. The math is simple. The implications are catastrophic.

By 2028, this accounting maneuver will have inflated reported earnings by $170 billion. Not revenue. Pure phantom profit. META alone books $2.9 billion in “savings” by pretending AI servers last 5.5 years.

Oracle’s earnings are overstated 26.9% by fiscal 2028. Every analyst model, every price target, every retirement fund allocation built on earnings that exist only on spreadsheets.

Nvidia ships new architecture every 18 months. Blackwell today. Rubin in 2026. Each generation makes the last economically worthless for frontier AI. Yet balance sheets treat them like they appreciate with age.

The energy math exposes the con: AI demands 200 terawatt-hours of new power by 2027. Grid capacity that doesn’t exist.

Utilization rates already falling below depreciation assumptions. Equipment sitting idle is still being depreciated over six years.

When Amazon reversed course in late 2024 and shortened lives, markets shrugged. That was the warning shot.

This isn’t prediction. This is reading.

META 2024 10-K, page 67. Oracle fiscal 2024 filing, Note 1. Microsoft 2022 adjustment, publicly disclosed. All there. All legal. All designed to smooth earnings through the largest capital deployment in corporate history.

The sector deploys $1.5 trillion through 2028. The depreciation comes due in 36 months. Every comparable historical bubble ended the same way: not with handcuffs, but with footnotes that turned billions into smoke.

The music stopped. Nobody noticed yet.​​​​​​​​​​​​​​​​

Full Article can be read here – https://open.substack.com/pub/shanakaanslemperera/p/the-great-ai-earnings-illusion-how?r=6p7b5o&utm_medium=ios&utm_source=post-publish