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Nothing, in the same way that TSMC could cut Nvidia and OpenAI out. Vertical integration is incredibly powerful, but it requires mastery of the whole stack. D
by brookst 2y ago
Nothing, in the same way that TSMC could cut Nvidia and OpenAI out.
Vertical integration is incredibly powerful, but it requires mastery of the whole stack.
Does Nvidia understand AI consumers the way OpenAI / Anthropocene does? Do they have the distribution channels? Can they operate services at that scale?
If they can truly do it all and the middlemen don’t add any unique value, Nvidia (or TSMC) can and should make an integration play. TBB I’m skeptical though.
- Keyframe 2y ago> Nothing, in the same way that TSMC could cut Nvidia and OpenAI out. one thing is not like the other.
- brookst 2y agoThey’re exactly alike. The question is “why doesn’t an upstream supplier just use its own products and cut their customers out?” If you prefer, we can ask why TSMC doesn’t cut Nvidia out and just design AI chips. It gets to the same place: expertise as a supplier in one stage of a value chain is not fungible to all stages.
- actionfromafar 2y agoBut it's entirely possible to me that TSMC lacks some of the hardware knowledge that Nvidia has. A fab has a lot more than just TSMC equipment in, hasn't it?
- Keyframe 2y agoI disagree. Nvidia designs chips and has demonstrated it can move between manufacturers (TSMC to Samsung). TSMC does not have know-how to design nvidia level of chips or develop supporting infrastructure (software and sales) because a) they have demonstrated they don't have any b) other players which do have capacity like AMD and Intel have also demonstrated they don't have any. Nvidia can move its vertical, TSMC not really. If you would've mentioned Apple for example, then maybe.. since that know-how is licensable to an extent (Arm).