Will nvidia's huge bet on artificial intelligence chips

NVIDIA's bet on artificial-intelligence chips, specifically the H100, has been met with significant interest and investment. Despite the high cost and supply constraints of these chips, companies like Amazon have been using them for their generative AI services, as demonstrated by the economics around NVIDIA's H100s mentioned in a presentation by James Hamilton, SVP at Amazon. With the demand for AI training workloads continuing to grow, it seems that NVIDIA's bet on AI chips could be a lucrative one.

Some points to consider regarding NVIDIA's AI chip bet include:

  • Scaling: NVIDIA chips have been used for large-scale AI training run costs, with some runs reaching millions of dollars. This demonstrates the potential for NVIDIA's AI chips in the big data and analytics industry.

  • Cost: The high cost of NVIDIA's AI chips, such as the H100, may not be a significant barrier for large companies like Amazon and Google, which have the financial resources to invest in these technologies.

  • Competition: While there have been discussions about the possibility of more companies entering the AI chip market, current cloud providers primarily rely on NVIDIA for AI-based computing. This could create opportunities for new startups to compete in this market.

  • Portability: The challenge of porting AI workloads to different architectures or cloud providers may also be an area where NVIDIA can capitalize on its AI chip investments.

Overall, NVIDIA's bet on AI chips seems to be a strategic move to capitalize on the growing AI industry. While there are challenges to overcome, such as cost and supply constraints, the potential for growth in this market could make it a profitable investment for the company.

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