Nvidia 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.
They don't have the talent.
Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
21–30 of 114 posts
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#22Earlier 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…
> AI has reached a state of software issue, not hardware
Citation very much needed.
At the very least, OpenAI seems to believe more and larger datacenters is the path to better models... and they've been right about that every time so far.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#23As long as both companies remain stable and viable, there's probably limited upside to pouring more money into them. If they fail, and bring down the AI ecosystem with them, that is very bad news for Nvidia. So they've been there nurturing their success and providing capital to backstop their exponential growth.
You can see Nvidia stepping in throughout the ecosystem with confidence boosting investments where needed. They haven't just supported Anthropic and OpenAI.
If OpenAI and Anthropic succeed, and get their business fly-wheels fully spinning, they don't necessarily need more capital from Huang. Ultimately the goal of Nvidia is to profit from their long-term success by selling them GPUs for a long, long time. The goal isn't to keep plowing money into them forever.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#24Earlier 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…
Great, when the AI bubble bursts, they can repackage their AI chips into consumer cards! /s
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#25Nvidia 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.
They don't have the talent.
Are you suggesting Nvidia doesn't have talent in the AI industry?
NVIDIA has released NVIDIA Deep Learning Super Sampling (DLSS) and a Frame Generation model, NVIDIA Super Resolution (VSR) being the most popular/well known models. (DLSS is outstanding technology, despite the sometimes misleading marketing).
Nvidia has released countless models:
Alpamayo 1 (Car navigation model) Cosmos-Reason2 (reasoning vision language model) Nemotron 3 (Large Language Model series) Llama-Nemotron (Large Language Model series) Isaac GR00T (VLA Models) Nemotron OCR (Optical Character Recognition models)
Take a look at their HuggingFace Collections, almost 100 different collections with countless models inside each collection: https://huggingface.co/nvidia/collections
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#26[deleted]
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#27Nvidia 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 maybe TSMC should make cellphones? If you're higher up the supply chain why go downstream into risk? It's financially irresponsible.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#28Nvidia 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.
They don't have the talent.
NV has a massive amount of AI talent, and a lot of them have PhDs.
Are you suggesting they're lacking on the ultra-high-end? That is: 5-10M+ in comp to sign a single researcher/IC; industry rock star territory.
Major frontier AI labs do tend to have that type of talent in abundance. I'm sure NV has the equivalent when it comes to hardware design. Surely in AI research too, but perhaps not in the same quantities.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#29Instead 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.
If I were Nvidia, I would give more attention to consumer GPUs to hedge my bets. When (not if) this AI bubble pops, their AI customers will become worthless to them very quickly as they won't be buying more GPUs. And when that day comes, I would want to still have consumers to sell to, rather than have them all buying from AMD because I ignored them.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#30Instead 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.
This leaves an opening for Intel to get in the game. Their new lines have a pretty decent value proposition for mid-tier gaming. If they focused on the higher end they would could own it. There is massive latent demand because of the NVidia situation. It’s easier to make money from than the R&D to build the next Blackwell but there is just as much demand for local/private models on the prosumer level.