How Nvidia became the world’s most important company overnight

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The three Silicon Valley engineers behind Nvidia had just $US40,000 between them when they started the company. Now it’s worth trillions.

Large language models such as ChatGPT and Google Bard require thousands of GPUs, both for their initial “training” and for the subsequent interactions known as inferences.Amazon, Microsoft and Google, which operate the giant cloud computing data centres on which AI models generally run, are placing orders worth billions of dollars with Nvidia.

The company’s results on Wednesday were seen as definitive because they suggested its leap in sales was not just a one-off but part of a sustained surge in investment. Still, not everyone is buying what Huang is selling. There are concerns that the general public’s interest in ChatGPT is beginning to wane.While the ChatGPT boom has relied on companies buying up swathes of Nvidia chips, companies such as Meta are now championing AI algorithms that need less computing power.‘Nvidia’s hardware has become indispensable to the AI-driven economy.

Greg Bassuk, chief executive of AXS Investments, says Nvidia’s valuation is “suspect for some investors concerned about geopolitical impacts on the company’s growth prospects”.

 

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How Nvidia became the world’s most important company overnightAlmost every company and government in the world is desperate to invest in AI and Nvidia has ridden that wave to a trillion-dollar valuation.
Source: FinancialReview - 🏆 2. / 90 Read more »