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I talked to someone at Nvidia ~2019 or ~2020 and their plan at the time was to completely vertically integrate and sell compute as a service via their own manag
by nijave 1y ago
I talked to someone at Nvidia ~2019 or ~2020 and their plan at the time was to completely vertically integrate and sell compute as a service via their own managed data centers with their own software, drivers, firmware, and hardware so this seems like just another incremental step in that direction.
- SV_BubbleTime 1y agoIn 2019 or 2020 that probably seemed reasonable. Now? You would have to tell me nVidia was also building multiple nuclear power plants to get the scale to make sense.
- noir_lord 1y agoThat's one way to arrive at an IBM Mainframe like model I guess. It'll work until you can buy comparable expansion cards for open systems (if history is any guide).
- mrbungie 1y agoYep, tech is incredibly circular. Once Nvidia gets there is highly probable that "disruptive" competition will apear due to mere desire/pressure for more freedom and options (and knowing NVDA, also costs).
- cyanydeez 1y agoAMD is already knocking on the same door. If they had focused more on drivers it'd be an equal comparison.
- michaelt 1y agoMaybe in 2019, but I find it hard to believe nvidia looks at google’s TPU business model enviously these days.
- skybrian 1y agoAre TPU’s a bad business model?
- AnthonyMouse 1y agoCustomers are increasingly wary of building their business on someone else's land because they've seen it happen too many times that once you're locked in the price goes up, or the company who is now your only viable supplier decides to enter your own market. And at least if anyone can buy the hardware you'll have your own or have multiple competing providers you can lease it from. If you can only lease it and only from one company, who would want to touch that? It's like purposely walking into a trap.
- cyanydeez 1y agoThis might be the source of the AI bubble burst, just like the 2000 bubble. Eventually someone's gonna raise the price to cover a bill and suddenly everyone looks at actual revenue and power bills , calculates within 6 months they'll not get their MBA turnip squeezed bonus and walk away
- skybrian 1y agoLock-in is a valid concern, but on the other hand, for many apps, it seems like this can be fairly easily mitigated? If you can swap in a different LLM, I don't think it matters if it's running on Google TPU's or NVidia? Meanwhile, at the hardware level, TPU's provide some competition for NVidia.
- AnthonyMouse 1y agoBut then what's the case for making them Google-exclusive instead of selling the hardware to anyone who wants to buy one?
- amelius 1y ago> vertically integrate Sounds like they are going the Apple way. How long until we have to pay 30% to get our apps in their AI-Store?
- DevKoala 1y agoWe already pay a 100% premium on AWS.
- diamond559 1y agoMore like IBM