Nvidia sells chips to whoever wins, so investing in a specific lab creates downside with no real upside. The more interesting read is whether Huang sees model providers compressing toward commodity pricing. I wrote about why that layer is structurally squeezed: https://philippdubach.com/posts/is-ai-really-eating-the-worl...
Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
101–110 of 114 posts
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#102Earlier quoted context omitted.
> 5 billion doesn't look like much when OpenAI just raised $110b though. Just about all of the AI providers "raises" are a fraction of the reported "raise", like this one. They didn't "raise" $100b. They got commitments for $35b, with said commitments being dependent on meeting certain criteria. Every "raise of $FOO" I've seen in the past year or two has not resulted in them getting their hands on $FOO in cash to spe…
You might be surprised to learn that there isn’t even $100b of cash [1]. Some sort of commitment structure necessarily substitutes. [1]: https://fred.stlouisfed.org/series/USDIVCA
Doesn't that show physical cash in bank vaults? Am I misunderstanding? That number would be utterly meaningless for this discussion.
Edit: I see this was covered in other replies
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#103Instead 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.
No problem with that, even if it takes force.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#104Earlier quoted context omitted.
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.
Their story (valuation) hinges on it - therefore that’s their investment thesis when raising money.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#105Earlier quoted context omitted.
“I wouldn’t pick up $20 if there was $100 on the ground!” Most people would pick up both. These economic proclamations don’t seem to make sense, when applied to different contexts — which suggests what you’re saying might be folk wisdom rather than sound theory (and greatly over simplifying the problem). You’re also discounting ecosystem effects — gaming GPUs driving demand for datacenter and workstation GPUs as hobb…
> “I wouldn’t pick up $20 if there was $100 on the ground!” Most people would pick up both. No, it’s more like there’s a massive pile of both $20s and $100s on the ground. You wouldn’t waste time running between the two, you’d focus on the $100s
If I have a garbage bag, I'm shoving everything in there.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#106Earlier quoted context omitted.
“I wouldn’t pick up $20 if there was $100 on the ground!” Most people would pick up both. These economic proclamations don’t seem to make sense, when applied to different contexts — which suggests what you’re saying might be folk wisdom rather than sound theory (and greatly over simplifying the problem). You’re also discounting ecosystem effects — gaming GPUs driving demand for datacenter and workstation GPUs as hobb…
If you were carrying heavy shopping in both arms would you stop to pick up a quarter? A dollar?
I wouldn't pick up either even with empty hands. No idea where they've been. Maybe a fiver, a twenty sure. At that point I'd put down my bags and grab both.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#107Earlier quoted context omitted.
>OpenAI seems to believe more and larger datacenters is the path to better models... Does that mean they produce better slop, or more slop faster?
Better slop. The effect that these systems get better as you scale up [0] is real you know. [0]: https://arxiv.org/pdf/2001.08361
Slop is still slop. There is no legitimate evidence that these systems get any better just by throwing more hardware at it. Every one of the people in this paper is involved with OpenAI, so it is very suspect in its findings.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#108Earlier quoted context omitted.
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.
the only way this argument works is if AMD somehow creates GPUs that run circles around nvidia and boxes them out price wise, and at the same them themselves don’t start prioritizing enterprise customers more. otherwise consumers will choose the best performing gpu possible, generally people don’t care about companies turning their backs on consumers in this way
They don't need to run circles, just be close enough for a good enough price.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#109OpenAI and Anthropic are better off with cerebras rather than nvidia
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#110Earlier quoted context omitted.
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
I am afriad thhe GPUs chips will be often useless (to power hungry, running too hot and needing too expensive accessories) but it might be possible to harvest the memory chips and put them on useful GPU cards.