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> He tells me that, by the end of this year, Meta will own more than 340,000 of Nvidia’s H100 GPUs That's approx $15b worth of H100 GPUs.
by tikkun 3y ago
> He tells me that, by the end of this year, Meta will own more than 340,000 of Nvidia’s H100 GPUs
That's approx $15b worth of H100 GPUs.
- cleverwebble 3y agoYou are assuming they are paying retail price, which they certainly are not.
- JoshTko 3y agoGiven the demand why wouldn't Nvidia be able to charge sticker price?
- bilekas 3y agoYou can afford to take a hit off your profits when you can simply ramp up production for retail sales. Looks great too for shareholders.
- KeplerBoy 3y agoThey can't just ramp up production though. Isn't TSMC booked for years by them, Apple, Intel and AMD?
- doctorpangloss 3y agoNobody really knows. It certainly suits them for everyone to believe there is some secular reason, some supply crunch, it even suits AMD and Intel. Presumably all the chip supply issues regarding autos have been resolved, and yet prices have risen 30% in a decade, and there’s no reversal.
- blackoil 3y agoWe know OpenAI and Azure was struggling to get enough GPU. That was implied not just by their words but also by action. And considering these two companies are most aggressive and making most money out of this AI. If GPUs are available they would have been able to buy it.
- mycodebreaks 3y agovolume customers always get special price.
- SketchySeaBeast 3y agoWouldn't it still be $15bn? If I manage to buy $20 worth of gold for $10 through a special deal, is it not still $20 worth of gold?
- nix0n 3y agoUsed GPUs cannot be sold for the same price that new GPUs are bought.
- Almondsetat 3y agoDoes anyone know where this hardware gets trickled down once decommissioned?
- FirmwareBurner 3y agoMaybe ebay? Not much good though as Nvidia doesn't provide drivers for those to the public.
- shaklee3 3y agoDrivers for the H100 are available right on their website
- FirmwareBurner 3y agoReally? I had no idea. From what I knew, they didn't. My bad then.
- SketchySeaBeast 3y agoNo, but they still got $15bn worth, regardless of discount.
- fsckboy 3y agoyou're making very good and clear points, but it's still not clear whether Zuck is referring to the budget spent or the street value received
- KeplerBoy 3y agoWhat makes you think they are getting a good discount? What are they going to do? Buy AMD, yeah right. Nvidia's sales are only limited by the number of wafers they can get from TSMC.
- paulddraper 3y agouse less
- tw04 3y ago>What are they going to do? Buy AMD, yeah right. Build their own? It's what Microsoft, Google, and AWS are doing. >Nvidia's sales are only limited by the number of wafers they can get from TSMC. No, they're limited by the cost per operation vs. Facebook building their own. The cloud providers have already decided it's cheaper to do it themselves. Sure they'll keep buying GPUs for general public consumption but that may eventually end too.
- rvnx 3y agoAt some point Google Cloud, AWS, Alibaba Cloud, Apple, etc are going to make their own specialized chips (Google tried a bit with their tensors chip). There is no value into the NVIDIA-part by itself, only the raw power is interesting. If tomorrow this is AMD, or China-Town chip, it's perfectly fine. I wouldn't miss the CUDA toolkit mess.
- KeplerBoy 3y agoIf raw power per dollar would be all that's interesting we'd all run 7900 XTX clusters like geohot in his tinybox. We are not, because there's clearly value in the CUDA ecosystem.
- latchkey 3y agoThere certainly is a lot of value in the CUDA ecosystem, today. The problem is that when all the big companies are buying up hundreds of thousands of GPUs, that doesn't leave much for anyone else. Sane business people will look to decentralize their compute over time and not be reliant on a single provider. AMD will be able to take advantage of that and they've already stated that is their focus going forward. ROCm/HIP are getting incrementally better, MI300x have 192GB and benchmarks are looking good, the only problem is that nobody has access to the higher end hardware from AMD today. That's why I'll have MI300x, for rent, soon.
- empath-nirvana 3y agoit's not going to be an order of magnitude difference. It's a significant investment in hardware.
- newsclues 3y agoNot always. For high in demand products they could pay more to guarantee supply and delivery dates. Some people will pay more to be first in line.
- _giorgio_ 3y agoEven if that was true, how much discount do you suppose that they can have? Given that GPU production is mostly sold out, and that giving META a bigger discount would simply mean losing money from other purchasers.
- LazyMans 3y agoHow much does one need to go after crypto currencies vulnerable to a 51% attack?
- incrudible 3y agoDepends on how much compute there is to mine it. Not that many valuable cryptos still use GPU PoW. You also need a counterparty to actually profit from it.
- teaearlgraycold 3y agoOh man if Elon had billions in H100s we might actually see that happen. And I’m no fan of Elon but I’m also no fan of cryptocurrency these days. Might be worth it just to watch the crypto world burn.
- incrudible 3y agoA successful 51% attack on a major cryptocurrency would not necessarily be that impactful. So what if Elon can doublespend? He would need a lot of crypto, a counterparty, and the strong desire to waste money. Large miners could already collude to do it, it just is not in their interest.
- teaearlgraycold 3y agoI’m wondering if there would be enough FUD to crash one coin’s value. And then if one falls perhaps more could.
- incrudible 3y agoFUD of what? That some rich fool out there is double spending, and you of all people would be the counterparty?
- belltaco 3y agoPresumably the new bitcoin ETFs allow shorting? Taking a big short position before crashing the value sounds like a plausible attack.