Why would they chase a lower margin business area? Are they out of ideas?
Nvidia is gearing up to sell servers instead of just GPUs and components
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Re: Nvidia is gearing up to sell servers instead of just GPUs and components
#32Guys, please read the article. Yes NVIDIA sells servers already. What they mean is they are going to also do other system parts that currenlty the partners are doing.
> Starting with the VR200 platform, Nvidia is reportedly preparing to take over production of fully built L10 compute trays with a pre-installed Vera CPU, Rubin GPUs, and a cooling system instead of allowing hyperscalers and ODM partners to build their own motherboards and cooling solutions. This would not be the first time the company has supplied its partners with a partially integrated server sub-assembly: it did so with its GB200 platform when it supplied the whole Bianca board with key components pre-installed. However, at the time, this could be considered as L7 – L8 integration, whereas now the company is reportedly considering going all the way to L10, selling the whole tray assembly — including accelerators, CPU, memory, NICs, power-delivery hardware, midplane interfaces, and liquid-cooling cold plates — as a pre-built, tested module.
Re: Nvidia is gearing up to sell servers instead of just GPUs and components
#33Nvidia already sells servers? What I don't really get, is that Nvidia is worth like $4.5T on $130B revenue. If they want to sell servers, why don't they just buy Dell or HP? If they want CPUs want not buy AMD, Qualcomm, Broadcom or TI? (I know they got blocked on their ARM attempt before the AI boom) Their revenue is too low to support their value, shouldn't they use this massive value to just buy up companies to up…
>why don't they just buy Dell or HP?
Why buy a complex but relatively low margin business that comes with a lot of baggage they don't need, when they can focus on what they do best and let Dell and HP compete against each other for Nvidia's benefit?
Same reason why Apple doesn't buy Foxconn or TSMC.
Re: Nvidia is gearing up to sell servers instead of just GPUs and components
#34In a sense, they already do, since they're heavily invested in CoreWeave. For those unfamiliar, CoreWeave was a crypto company that pivoted to building out data centers.
It's interesting to se the market try to do anything to rally. The problem is you guys are rallying on the thought that you've scared the Fed into cutting rates, but actually by rallying you short circuit it. You ensure they won't cut. And that's how the market's lillypad hopping thinking is actually just stupidity. You rallied, so now there are no rate cuts so the crash will be even more brutal.
Re: Nvidia is gearing up to sell servers instead of just GPUs and components
#35This would basically start to turn cloud providers into CoLo facilities that just host these servers.
Makes sense longer term for NVidia to build this but adds to the bear case for AWS et al long term on AI infrastructure.
Re: Nvidia is gearing up to sell servers instead of just GPUs and components
#36I talked to someone at Nvidia ~2019 or ~2020 and their plan at the time was to completely vertically integrate and sell compute as a service via their own managed data centers with their own software, drivers, firmware, and hardware so this seems like just another incremental step in that direction.
Re: Nvidia is gearing up to sell servers instead of just GPUs and components
#37Why would they chase a lower margin business area? Are they out of ideas?
More vertical integration
Re: Nvidia is gearing up to sell servers instead of just GPUs and components
#38What software will those Nvidia servers run? Are they creating their own software stack or working with one or more partners?
They already do have a pretty robust software stack that goes all the way to code/analytics libraries. I'm not sure on the current state of things but ~2020 they were automatically testing chip designs for performance regressions in analytics libraries across the entire stack from hardware to each piece of software
Re: Nvidia is gearing up to sell servers instead of just GPUs and components
#39I talked to someone at Nvidia ~2019 or ~2020 and their plan at the time was to completely vertically integrate and sell compute as a service via their own managed data centers with their own software, drivers, firmware, and hardware so this seems like just another incremental step in that direction.
In 2019 or 2020 that probably seemed reasonable.
Now? You would have to tell me nVidia was also building multiple nuclear power plants to get the scale to make sense.
Re: Nvidia is gearing up to sell servers instead of just GPUs and components
#40They're not stopping at servers. They want to sell datacenters.