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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

#631

Post by tptacek »

cubefox wrote: post #629
tptacek wrote: post #613

Earlier quoted context omitted.

This is an argument that OpenAI needs to achieve a supernatural outcome in order to be a financial success.

So you think superhuman intelligence is supernatural.

If you want to substitute "science fiction" that's fine too. We generally don't bank real investment expectations on science fiction outcomes. The positive expectation scenario you've provided is "OpenAI obsoletes workers, to the extent that Walmart is small fish". That's a sci-fi outcome, not a rational expectation.

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

#632

Post by rhetocj23 »

mgh95 wrote: post #431
empath75 wrote: post #357

Earlier quoted context omitted.

Amazon lost money every year for the first 9 years of it's existence and people said it was a bubble the entire time.

Amazon was gross margin profitable -- and significantly so -- the entire time. It just turns out they were a server farm subsidizing a gift shop.

Yeah this.

Ultimately the marketplace was just an investment that had embedded within it a real option for AWS. Magical really.

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

#633

Post by rhetocj23 »

drexlspivey wrote: post #523
JCM9 wrote: post #402

Earlier quoted context omitted.

A company buys back its stock if it thinks the stock is underpriced. Otherwise when “you have more money than you know what to with” you give it to your shareholders via a dividend. A concept mostly forgotten by tech companies.

A company buys back stock because distributing dividends incurs a 30% withholding tax.

Sorry guys but this is why I dont want to see many finance related posts here, because very few know what they are talking about.

Buybacks are the preferred method of RETURNING CASH to shareholders, because dividends historically have been sticky. Buybacks are flexible.

Buybacks are also done to optimise the debt ratio, to minimise the firms cost of capital and thereby maximizing firm value.

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

#634

Post by Rover222 »

neutronicus wrote: post #435
Rebuff5007 wrote: post #265

Earlier quoted context omitted.

Curious what makes you think the money is well spent. I can maybe digest the fact that it helped prototype and ship a bit more code in a shorter time frame... but does that warrant in enough new customers or a higher value product that would justify $100k a month?!

Some of that $100k/month might be powering the features, rather than supporting development.

yeah it's probably 80% going to product features (processing/classifying data, and agentic workflow features), and 20% to dev tools

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

#635

Post by rhetocj23 »

JCM9 wrote: post #402
drexlspivey wrote: post #164

Earlier quoted context omitted.

> The bubble is that Nvidia got that money from its crazy high stock price, This is totally False, NVDA has not done any stock offerings. The money is coming from the ungodly amount of GPUs they are selling. In fact they are doing the opposite, they are buying back their stock because they have more money that they know what to do with.

A company buys back its stock if it thinks the stock is underpriced. Otherwise when “you have more money than you know what to with” you give it to your shareholders via a dividend. A concept mostly forgotten by tech companies.

Ermm this is nothing but a wealth transfer from the shareholders who sell at too low a price, to those who dont.

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

#636

Post by Rover222 »

Rebuff5007 wrote: post #265
Rover222 wrote: post #217

Earlier quoted context omitted.

My employer spends $100k/month or more on OpenAI fees. Money well spent, in both product features and developer process. This is just one fairly small random startup. Thousands of companies are spending this money and making more money because of it.

Curious what makes you think the money is well spent. I can maybe digest the fact that it helped prototype and ship a bit more code in a shorter time frame... but does that warrant in enough new customers or a higher value product that would justify $100k a month?!

Probably 80% of that money goes towards product features that are crucial to retention and acquisition of customers, and the business is profitable. Could those features exist without AI integrations? Some yes, but the data would be limited/inferior, other features would not be possible at all.

The 20% spent on dev tooling seems well-spent. About 10 devs on the team, and all at least 2x (hard to measure exactly, but 2x seems conservative) more productive with these tools.

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

#637

Post by cubefox »

tptacek wrote: post #631
cubefox wrote: post #629

Earlier quoted context omitted.

So you think superhuman intelligence is supernatural.

If you want to substitute "science fiction" that's fine too. We generally don't bank real investment expectations on science fiction outcomes. The positive expectation scenario you've provided is "OpenAI obsoletes workers, to the extent that Walmart is small fish". That's a sci-fi outcome, not a rational expectation.

You would have called ChatGPT or Dall-E science fiction just shortly before it actually came out.

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

#638

Post by agentultra »

sandspar wrote: post #568
agentultra wrote: post #298

Water is a critical resource in dwindling supplies in many water-stressed regions. These data centers have been known to suck up water supplies during active droughts. Is there anyone left at the EPA that gets a say in how we manage water for projects like this?

Am I correct that your argument is something like, "AI endangers our water supply"? If so, what evidence would it take for you to change your mind? Maybe someone here can provide it.

No.

The argument is that water management policy is lacking and supplies are dwindling, shouldn’t we have better oversight of this resource before we let corporations run full speed ahead?

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

#639

Post by [deleted] »

epolanski wrote: post #529
ComputerGuru wrote: post #371

Framing it in gigawatts is very interesting given the controversy about skyrocketing electric prices for residential and small business users as a result of datacenters over the past three years, primarily driven by AI growth. If, as another commenter notes, this 10GW is how much Chicago and NYC use combined , then we need to have a serious discussion about where this power is going to come from given the dismal stat…

> is neither fair nor sustainable That's half what I pay in Italy, I'm sure the richest country in the world will do fine.

[deleted]

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

#640

Post by alberth »

aurareturn wrote: post #621
alberth wrote: post #609

Earlier quoted context omitted.

I thought Apple gets exclusive access to the latest node for the first 1-2 years. Is that not the case?

No. That's not the case. Maybe for a few months only.

Correct me if I'm wrong but didn't TSMC launch N3 in 2022, and still only Apple uses this latest/smallest node.

Both AMD and NVIDIA are using N4.

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