The Stargate money didn’t show up I guess, and now the whole gridlock is collapsing?
Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
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Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#12Earlier quoted context omitted.
Datacenter income for nVidia last quarter was something like 62B vs the gaming market of https://nvidianews.nvidia.com/news/nvidia-announces-financia...
It is insanely stupid that '4B' with a B, is 'too small' of an operating space.
The absolute value is irrelevant - it's the opportunity cost that determines this.
It doesn't matter if the consumer market is 4T, if the AI market is 60T!
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#13Earlier quoted context omitted.
And why should a business do that? Limited chip production capacity be spent on most profitable ventures.
I should admit this is partly my personal preference. That said, gaming has been a durable market for decades, and there’s a strong cycle where better chips enable better games, which then drives more demand for better chips.
That same virtuous cycle works for their data center segment
Every GW of Blackwell generates more revenue than the entire gaming business does in 1 year.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#14Nvidia could flip a switch and start competing with former customers. They have the talent, the models, the HW, and they know how to quickly build out DCs.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#15Instead of pouring more money into OpenAI and Anthropic, Nvidia should invest more in expanding production capacity for the RTX 5000 series and future generations. High-end consumer GPU availability is still constrained, especially for the RTX 5090, and street prices remain elevated. Nvidia should come back to the consumer side.
And why should a business do that? Limited chip production capacity be spent on most profitable ventures.
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Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#16Instead of pouring more money into OpenAI and Anthropic, Nvidia should invest more in expanding production capacity for the RTX 5000 series and future generations. High-end consumer GPU availability is still constrained, especially for the RTX 5090, and street prices remain elevated. Nvidia should come back to the consumer side.
Datacenter income for nVidia last quarter was something like 62B vs the gaming market of https://nvidianews.nvidia.com/news/nvidia-announces-financia...
That is not substantiable. AI bubble is wealthy hype like a single drop of blood can be used to validate 100 different diagnostic test. Reality is parts per million fails this along with reusable medium. Wealth latches to idiocy.
Gaming and CAD market are real expectations that latch to reality. Grow the education systems and grow both. So is matrix math, such as hashing.
AI has reached a state of software issue, not hardware. And the divergence of AI hardware does not equate to CAD and Gaming math.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#17Nvidia could flip a switch and start competing with former customers. They have the talent, the models, the HW, and they know how to quickly build out DCs.
That would not go well for nvidia. Why would they want to enter and compete in a market where everybody is losing money? And in so doing alienate the people that make them profitable?
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#18Nvidia could flip a switch and start competing with former customers. They have the talent, the models, the HW, and they know how to quickly build out DCs.
And they have a moat - they can control the quantity and quality of hardware flowing to their competitions?
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#19Nvidia could flip a switch and start competing with former customers. They have the talent, the models, the HW, and they know how to quickly build out DCs.
That would not go well for nvidia. Why would they want to enter and compete in a market where everybody is losing money? And in so doing alienate the people that make them profitable?
If those customers end up profitable, it could be tempting for nVidia to vertically integrate.
I don't think it's as easy as others say, though.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#20Earlier quoted context omitted.
Datacenter income for nVidia last quarter was something like 62B vs the gaming market of https://nvidianews.nvidia.com/news/nvidia-announces-financia...
That is not substantiable. AI bubble is wealthy hype like a single drop of blood can be used to validate 100 different diagnostic test. Reality is parts per million fails this along with reusable medium. Wealth latches to idiocy. Gaming and CAD market are real expectations that latch to reality. Grow the education systems and grow both. So is matrix math, such as hashing. AI has reached a state of software issue, not…
How many of the last ten years have had some kind of "temporary" GPU shortage? It was crypto, now it's LLMs, who knows what's next?
The only winning strategy for these guys is to exploit the market for all it's worth during shortages and carefully control production to manage the inevitable gluts.