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OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

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Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#191

Post by vessenes »

rzerowan wrote: post #94
fufxufxutc wrote: post #24

In accounting terms, this is a shady business practice known as "round tripping" where you invest in a company for the sole purpose of them buying your product. It allows you to count your revenue multiple times.

Its the same loop de loop NVIDIA is doing with Coreweave as i understand.'Investing' in coreweave which then 'buys' NVIDIA merch for cloud rental , resulting in Coreweave being the top 4 customers of NVIDIA chips.

Wait, why the quotes? NVDA sends cash, and the Coreweave spends it, no? I don’t think quotes are accurate, if they imply these transactions aren’t real, and material. At the end of the day, NVDA owns Coreweave stock, and actual, you know, physical hardware is put into data centers, and cash is wired.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#192

Post by ogaj »

jazzyjackson wrote: post #145
amluto wrote: post #133

Earlier quoted context omitted.

On the bright side, if lots of power capacity is added and most of the GPUs end up idle, then there might be cheap power available for other uses.

Power generation is not a monolithic enterprise. If more supply is built than needed, certain suppliers will go bankrupt.

They may, but that doesn’t mean that the capacity disappears. It may require some assumptions about USG willingness to backstop an acquisition but it’s not a significant leap to think that the generation capacity remains in (more capable?) hands.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#193

Post by jedberg »

JCM9 wrote: post #108

This is throwing more cards on the house of cards. Nvidia is “investing” in OpenAI so OpenAI can buy GPUs from NVidia. Textbook “round tripping.” I generally like what’s been happening with AI but man this is gonna crash hard when reality sets in. We’re reaching the scary stage of a bubble where folks are forced to throw more and more cash on the fire to keep it going with no clear path to ever get that cash back. If…

It's interesting how deals like this are politically relevant. Nvidia refused to do deals like this (investing in companies buying large amounts of NVIDIA GPUs) after they got the hammer from Biden's SEC for self dealing due to their investment in Coreweave.

But now that there is a new SEC, they are doing a bunch of these deals. There is this one, which is huge. They also invested in Lambda, who is deploying Gigawatt scale datacenters of NVIDIA GPUs. And they are doing smaller deals too.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#194

Post by pmdr »

If I had shovels to sell, I'd definitely announce a strategic partnership to have a huge quarry dug by hand.

Seriously, is there anyone in the media keeping unbiased tabs on how much we're spending on summarizing emails and making creatives starve a little more?

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#195

Post by jsheard »

vessenes wrote: post #162
JCM9 wrote: post #108

This is throwing more cards on the house of cards. Nvidia is “investing” in OpenAI so OpenAI can buy GPUs from NVidia. Textbook “round tripping.” I generally like what’s been happening with AI but man this is gonna crash hard when reality sets in. We’re reaching the scary stage of a bubble where folks are forced to throw more and more cash on the fire to keep it going with no clear path to ever get that cash back. If…

Almost every model trained by the majors has paid for itself with inference fees. I’m not saying there isn’t a bubble, but I am saying if the researchers and strategists absolutely closest to the “metal” of realtime frontier models are correct that AGI is in reach, then this isn’t a bubble, it’s a highly rational race. One that large players seem to be winning right now.

> Almost every model trained by the majors has paid for itself with inference fees.

Even if we assume this is true, the downstream customers paying for that inference also need it to pay for itself on average in order for the upstream model training to be sustainable, otherwise the demand for inference will dry up when the music stops. There won't always be a parade of over-funded AI startups burning $10 worth of tokens to bring in $1 of revenue.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#196

Post by ACCount37 »

pixelready wrote: post #166
JCM9 wrote: post #108

This is throwing more cards on the house of cards. Nvidia is “investing” in OpenAI so OpenAI can buy GPUs from NVidia. Textbook “round tripping.” I generally like what’s been happening with AI but man this is gonna crash hard when reality sets in. We’re reaching the scary stage of a bubble where folks are forced to throw more and more cash on the fire to keep it going with no clear path to ever get that cash back. If…

The real question is not whether this is a bubble since as you mentioned even if AI settles into a somewhat useful semi-mainstream tech, there is no way any of the likely outcomes can justify this level of investment. The real question is what are we gonna do with all this cheap GPU compute when the bubble pops! Will high def game streaming finally have its time to shine? Will VFX outsource all of its render to the c…

"The bubble will pop any minute now, any second, just you wait" is cope.

Even if AI somehow bucks the trend and stops advancing in leaps? It's still on track to be the most impactful technology since smartphones, if not since the Internet itself. And the likes of Nvidia? They're the Cisco of AI infrastructure.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#197

Post by gitremote »

moduspol wrote: post #52

Waiting patiently for the Ed Zitron article on this...

When executives can't measure success by output, they measure success by input, a perverse incentive that rewards inefficiency.

Execs ask their employees to return to office, because they don't know how to measure good employee output.

Now OpenAI and Nvidia measure success by gigawatt input into AI instead of successful business outcomes from AI.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#198

Post by [deleted] »

mountainriver wrote: post #174
vessenes wrote: post #162

Earlier quoted context omitted.

Almost every model trained by the majors has paid for itself with inference fees. I’m not saying there isn’t a bubble, but I am saying if the researchers and strategists absolutely closest to the “metal” of realtime frontier models are correct that AGI is in reach, then this isn’t a bubble, it’s a highly rational race. One that large players seem to be winning right now.

The idea that it’s a bubble on the frontier model side is insane. AI assisted coding alone makes it the most valuable thing we’ve ever created.

[deleted]

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#199

Post by vessenes »

DebtDeflation wrote: post #33

Wouldn't Nvidia be better served investing the $100B in expanding GPU manufacturing capacity?

They’re already spending as much money as they possibly can on growth, and have no further use for cash currently - they’ve been doing share buybacks this year.

Re: OpenAI and Nvidia announce partnership to deploy 10GW of Nvidia systems

#200

Post by nitwit005 »

TheRealGL wrote: post #34

Did I miss the part where they mention the 10 large nuclear plants needed to power this new operation? Where's all the power coming from for this?

I assumed this headline was not aimed at the public, but at some utility they want to convince to expand capacity. Otherwise, bragging about future power consumption seems a bit perplexing.
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