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.
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Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
51–60 of 114 posts
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#52Earlier quoted context omitted.
These days Nvidia has more money than it knows what to do with. They could certainly push $5b+ into each company annually and never miss it. They're tracking toward an astounding $200b in operating income (maybe over the next four quarters if the music doesn't suddenly stop).
5 billion doesn't look like much when OpenAI just raised $110b though. And how sustainable is NVDA's immense profits if this bubble actually bursts?
> 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 spend.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#53Earlier quoted context omitted.
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!
“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 hobbyist experimentation turns into industrial usage. We don’t know what would happen if nVidia stopped suppressing the GPU market, because it’s never been tried — nVidia has always viciously undercut their own grassroots.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#54Instead 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.
You saying they should have gone all in on Crypto mining?
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#55Earlier quoted context omitted.
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 langua…
> Are you suggesting Nvidia doesn't have talent in the AI industry? nVidia has an open position for system architect, orbital station AI datacenter
Sounds like you get to sit on the roof all day looking up.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#56Earlier quoted context omitted.
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!
“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…
The problem is that Nvidia cannot make infinite amounts of chips so they actually can't pick up both.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#57I don't really understand the idea that not investing more money is a "pullback". Have VC norms propagated so far that any company that makes any investment is presumed to be interested in repeated future rounds?
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#58As 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.…
These days Nvidia has more money than it knows what to do with. They could certainly push $5b+ into each company annually and never miss it. They're tracking toward an astounding $200b in operating income (maybe over the next four quarters if the music doesn't suddenly stop).
They could buy back stock or, God forbid, pay good old dividends to investors instead of throwing money away.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#59> Nvidia CEO Jensen Huang said his company’s recent investments in OpenAI and Anthropic are likely to be its last in both, saying that once they go public as anticipated later this year, the opportunity to invest closes ok, sounds obvious > Nvidia, for its part, isn’t offering much more on the matter ok, so no more news from nvidia > Still, a few other dynamics might also explain the pullback.. Wait it's a pullback?…
This is several investment rounds in so I think it might be fair to say it's a pullback.
Re: Jensen Huang says Nvidia is pulling back from OpenAI and Anthropic
#60Earlier quoted context omitted.
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.
Consumer GPUs are too small of a slice of their revenue to matter to them anymore.