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Link: Ten Gifts Nvidia Gave Its Investors

First, Kress told analysts that demand would outstrip supply of the company's next-generation Blackwell AI server chip, due out by the end of this year, well into 2025. Huang later all but confirmed that the company’s next flagship AI chip after Blackwell will arrive by the end of next year. And Kress volunteered details on the economics for Nvidia customers using AI chips, known as graphics processing units, which could allay any concerns about chatbots and other conversational AI tools taking too long to make money. She said that cloud providers can generate $5 over four years from renting out GPU servers for every $1 they spend on the chips, and companies that sell access to AI models through application programming interfaces (which app developers can tap) can generate $7 for every $1 they spend on Nvidia chips. She didn't say which Nvidia customers shared such data with the company, but the disclosure implies that Nvidia requested and got it. Third, Kress discussed new businesses related to the AI chip boom—namely, the sale of networking cables that connect AI chip servers to one another, which rose three and a half times to $3.2 billion in the April quarter. A key Ethernet-based networking product Nvidia sells, Spectrum-X, will be a multibillion-dollar business on its own within the next 12 months, she said. Huang later promised "new networking technology on a fast rhythm." #


Yoooo, this is a quick note on a link that made me go, WTF? Find all past links here.