Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

openai.com

Post reply on HN
Print view View original

281–290 of 668 posts

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

#281

Post by ben_w »

gmm1990 wrote: post #5

Strange unit of measurement. Who would find that more useful than expected compute or even just the number of chips.

For a while, it's become increasingly clear that the current AI boom's growth curve rapidly hits the limits of the existing electricity supply.

Therefore, they are listing in terms of the critical limit: power.

Personally, I expect this to blow up first in the faces of normal people who find they can no longer keep their phones charged or their apartments lit at night, and only then will the current AI investment bubble pop.

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

#282

Post by gloxkiqcza »

I’m really curious how this affects the consumer GPU market over the next few years. Sure, there has been a GPU shortage for a few years now but if this continues, there should be an absolute surplus of obsolete-gen enterprise GPUs flooding the market, right? Any ideas what limitations and benefits these cards might have for an enthusiast?

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

#283

Post by mgh95 »

radu_floricica wrote: post #263
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…

But real GPUs are being built, installed and used. It's not paper money, it's just buying goods and services partly with stock. Which is a very solid and time honored tradition which happens to align incentives very well.

What revenues do these GPUs generate for OpenAI? OpenAI is not currently profitable, and it is unclear if its business model will ever becomes profitable -- let alone profitable enough to justify this investment. Currently, this only works because the markets are willing to lend and let NVIDIA issue stock to cover the costs to manufacture the GPUs.

That's where the belief that we are in a bubble comes from.

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

#284

Post by wmf »

stale2002 wrote: post #215
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…

Does anyone in the finance business know how legal this all it? I am hearing terms like "round tripping" being thrown around. A practice where a company sells and buys back its own product to artificially inflate revenue. I'm asking because its not just OpenAI that they are apparently doing this with, instead its with multiple other major GPU providers, like Coreweave. And its just being done all out in the open? How…

IANAL but you can do pretty much anything as long as it's disclosed. The only problem with round-tripping is doing it secretly.

As an investor you may decide that round-tripping is dumb but in that case your recourse is to sell the stock.

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

#285

Post by andai »

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…

I think you have just described the global economy.

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

#286

Post by rapsey »

truelson wrote: post #269
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…

Going to leave this link here: https://www.hussmanfunds.com/comment/mc250814/ By many different measures, we are at record valuations (though must be said, not P/E however). Tends not to end well. And housing prices are based on when mortgages were at 3% and have not reset accordingly. We are in everything bubble territory and have been.

People are quite bearish and the stock market is making all time highs. This is actually a very good sign, because we are far from any euphoria.

Always keep in mind the old saying: pesimists get to be right and optimists get to be rich.

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

#287

Post by paxys »

BHSPitMonkey wrote: post #256
paxys wrote: post #128

> letter of intent for a landmark strategic partnership > intends to invest up to xxx progressively > preferred strategic compute and networking partner > work together to co-optimize their roadmaps > look forward to finalizing the details of this new phase of strategic partnership I don't think I have seen so much meaningless corporate speak and so many outs in a public statement. "Yeah we'll maybe eventually do som…

NVDA's share price enjoyed a nice $6 bump today, so the announcement did what it was supposed to do. In a sense, it's just an ask to public investors for added capital to do a thing, and evidently a number of investors found the pitch compelling enough.

Increase in share price doesn't provide extra cash to a company. They'd have to issue new shares for that.

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

#288

Post by [deleted] »

dummydummy1234 wrote: post #216
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…

My thought is think of all the really cheap compute that will be available to researchers. Sure, it will crash but at the end of the day there will be a huge glut of gpus that datacenters will be trying to rent out near cost. I (as a uninformed rando) think that there are a lot of research ideas that have not been fully explored because doing a small training run takes 100k. If that drops to 1000, then there is a lot…

[deleted]

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

#289

Post by melenaboija »

labrador wrote: post #131

For scale: The 1960's era US Navy submarine I served on had a 78MW reactor, so 10GW is 128 nuclear submarines

This still blows my mind.

If each human brain consumes ~20W then 10 GW is like 500 M people, that sounds like a lot of thinking. Maybe LLMs are moving in the complete opposite direction and at some point something else will appear that vaporizes this inefficiency making all of this worthless.

I don’t know, just looking at insects like flies and all the information they manage to process with what I assume is a ridiculous amount of energy suggests to me there must be a more efficient way to ‘think’, lol.

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

#290

Post by thfuran »

rapsey wrote: post #286
truelson wrote: post #269

Earlier quoted context omitted.

Going to leave this link here: https://www.hussmanfunds.com/comment/mc250814/ By many different measures, we are at record valuations (though must be said, not P/E however). Tends not to end well. And housing prices are based on when mortgages were at 3% and have not reset accordingly. We are in everything bubble territory and have been.

People are quite bearish and the stock market is making all time highs. This is actually a very good sign, because we are far from any euphoria. Always keep in mind the old saying: pesimists get to be right and optimists get to be rich.

Only if they're optimistic at the right time and not the wrong one.
Post reply on HN