Nvidia making 1,000% profit on H100 accelerators

Microsoft could possibly replace its own internal tools with custom hardware. If they built their own LLM and tailored hardware specifically for it to run their first party products then they could get the sort of performance gains and cost/benefit ratios they need. Because it will cost them 10’s of billions in hardware costs to bring things up to spec assuming their AI projects take root.

Building the LLM and the software falls pretty well into Microsoft’s wheelhouse so I have no doubts they can do that. Building hardware to accelerate it to a significant degree to where it provides them the performance and cost scaling needed to make it cheap enough to move from Nvidia is another.

But as Microsoft, Google, Amazon, etc are looking at spending a metric shitload of money on hardware over the next 5-10 years for AI acceleration they would be absolutely stupid if they didn’t seriously explore their options for their own hardware.

Because otherwise their performance and technical advantage against one another is limited to who can cut the biggest cheque to Nvidia the fastest to secure their newest cards first. That’s a level playing field that nobody but Nvidia benefits from. But the fact that they can’t even consider an AMD product as an alternative is a little sad.
 
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Lakados said:
Microsoft could possibly replace its own internal tools with custom hardware. If they built their own LLM and tailored hardware specifically for it to run their first party products then they could get the sort of performance gains and cost/benefit ratios they need. Because it will cost them 10’s of billions in hardware costs to bring things up to spec assuming their AI projects take root.

Building the LLM and the software falls pretty well into Microsoft’s wheelhouse so I have no doubts they can do that. Building hardware to accelerate it to a significant degree to where it provides them the performance and cost scaling needed to make it cheap enough to move from Nvidia is another.

But as Microsoft, Google, Amazon, etc are looking at spending a metric shitload of money on hardware over the next 5-10 years for AI acceleration they would be absolutely stupid if they didn’t seriously explore their options for their own hardware.

Because otherwise their performance and technical advantage against one another is limited to who can cut the biggest cheque to Nvidia the fastest to secure their newest cards first. That’s a level playing field that nobody but Nvidia benefits from. But the fact that they can’t even consider an AMD product as an alternative is a little sad.
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To a small degree I’m surprised Nvidia is t going the Arm route of doing an architecture license or custom design that a client can then go get their own fab time for. I mean right now, their lead is big enough to not need to, but looking to the future, seems like trying to secure some of the pie in the form of license fees vs. everyone saying ‘Screw this, I’ll take the hit and build my own’ seems like a solid play.

I wish AMD was not so far behind, to give Nvidia some actual competition. As a Nv share holder I have mixed feelings because yay profits, but worry that the lack of competition will drive larger customers who have the resources to just make their own.
 
LodeRunner said:
To a small degree I’m surprised Nvidia is t going the Arm route of doing an architecture license or custom design that a client can then go get their own fab time for. I mean right now, their lead is big enough to not need to, but looking to the future, seems like trying to secure some of the pie in the form of license fees vs. everyone saying ‘Screw this, I’ll take the hit and build my own’ seems like a solid play.

I wish AMD was not so far behind, to give Nvidia some actual competition. As a Nv share holder I have mixed feelings because yay profits, but worry that the lack of competition will drive larger customers who have the resources to just make their own.
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There is no money in licensing it, ARM barely breaks even on their licensing, their terms are too good and that is why all the big players were terrified of Nvidia buying ARM and changing that licensing.
There is more money in selling ARM chips by a long shot than licensing them out.

Nvidia's ARM chips are very good, they make minor modifications but they don't go terribly far off script with them, they just make changes to increase small aspects here or there as needed for their jobs, be it USB speeds, or Memory speeds, stuff like that.
Nvidia is now making enough first-party hardware that their AIBs are moving less of Nvidia's silicon than they themselves are, between their Founders Edition GPUs, Server Hardware, and Automation AI equipment, they aren't far off from being in a state where they could ditch the AIBs all together if they wanted too. But then they would need to deal with Warranty, Distribution, Shipping, Client Care, blah blah blah. Nvidia keeps the AIBs around so they don't have to deal with us because we are a PITA so it's worth losing out on the profits they could have to let ASUS, MSI, and Gigabyte deal with those headaches.
 
LodeRunner said:
.

I wish AMD was not so far behind, to give Nvidia some actual competition. As a Nv share holder I have mixed feelings because yay profits, but worry that the lack of competition will drive larger customers who have the resources to just make their own.
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Amen, brother.
 
1000% profits mean nothing when AI destroys what's left of humanity. Greed without oversight. And there is zero AI oversight. I wished there were harsh controls on AI on the level of Nuclear weapons. But there is NONE!
 
tangoseal said:
1000% profits mean nothing when AI destroys what's left of humanity. Greed without oversight. And there is zero AI oversight. I wished there were harsh controls on AI on the level of Nuclear weapons. But there is NONE!
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You can't un-open Pandora's Box unfortunately

Looks like the show might continue?

NVIDIA Blackwell B100 GPUs To Feature SK Hynix HBM3e Memory, Launches In Q2 2024 Due To Rise In AI Demand​

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https://wccftech.com/nvidia-blackwell-b100-gpus-sk-hynix-hbm3e-memory-launches-q2-2024-rise-in-ai/
 
tangoseal said:
1000% profits mean nothing when AI destroys what's left of humanity. Greed without oversight. And there is zero AI oversight. I wished there were harsh controls on AI on the level of Nuclear weapons. But there is NONE!
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It's all fun and games until the Butlerian Jihad.
 
I don't know what your guys' problem is, Terminators help👏solve👏problems👏

It's literally in the name

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