Nvidia’s Hardware and Software Competition 8/24/23

TechCheck

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Disruptors, Cnbc, Investing, Tech, Management, Business, Technology, Faang

4.5 • 66 Ratings

🗓️ 24 August 2023

⏱️ 6 minutes

🔗️ Recording | iTunes | RSS

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Summary

Nvidia’s blowout earnings is flexing its dominance in AI. Revenue at its data center segment, which includes AI chips like the A100 and H100, jumped 141% just from the last quarter. But are the cracks in that already beginning to show? Competition is beginning to emerge – on a software level from startups working on tools to reduce the cost of training and running machine learning models, and on the hardware front – from chipmakers and cloud service providers starting to produce their own AI chips.

Transcript

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0:00.0	Invidious blowout quarter renewing some faith in its AI dominance
0:06.5	posting that record 10.3 billion in data center revenue.
0:10.1	It's a hundred and forty one percent jump from just the last quarter but in today's
0:14.5	tech check our dear d'ubosa takes a look at the company's trying to break that
0:17.4	dominance lady. Carl in this case dominance may actually be an
0:21.9	understatement by one estimate
0:23.4	in video has a 90% market share for AI related gpus most people know this but it's not just
0:28.9	about the hardware the gpus in video has an entire ecosystem that includes a key software layer, specialized computers, even
0:35.6	computing services that makes NVIDIA more of a one-stop shop for AI developers.
0:41.6	Some of that, like the software layer, it's designed to keep customers
0:44.3	within its system. For example, it can reduce flexibility for even the biggest
0:48.3	cloud provider, AWS, which is working with a lot of AI companies. So competition, while it is still far from challenging
0:55.2	that dominance, it is beginning to emerge.
0:57.8	And we dived into it on the software level.
1:00.2	A number of startups are working on tools that they say reduce the cost of
1:04.8	training and running machine learning models compared with NVIDIA products.
1:08.2	Others are targeting alternative software altogether that would work
1:11.8	entirely outside of the
1:13.4	NVIDIA system thus freeing up developers to use different chips.
1:17.6	Now one such startup is modular and it just received a hundred million
1:20.9	dollars in new funding from General Cataly,
1:23.6	Google Ventures, among others.
	...

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