As someone who uses AI all day it all makes sense. However, if AI is going to have serious impact white collar jobs as some people predict, the demand will decline. People without jobs won't pay for expensive subscriptions or API prices and the economy will be in recession.
For me the important question is where the economy will be in the next 5 years. Because if the economy is doing well, I have no doubt the AI demand will continue to sky rocket. I don't think it matters to Nvidia how uses their compute, closed or open models. The win either way.
Look at South Korea in the 70s and today. Technology helped South Korea to leapfrog many Western companies in a few decades.
It will happen again. Many 3rd world countries have better mobile phone networks than Europe while they basically have ZERO copper in the ground.
While in Western countries everyone is skeptical about AI, Asian countries are building robot armies to replace Western collar workers. So we think about regulation and bubbles while others think of how leapfrogging us. Invest and cost is 2 sides of the same coin. It's obvious what we see here and what others see around the globe.
Nvidia already announced in 2023 a partnerhsip for a 2 GW system in India. That was before even Blackwell was released. Back then that was a bigger deal than any Hyperscaler.
Do people seriously think that data centers and AI compute is only built in US? WTF?
Hyperscalers reach their limit in CapEx while Nvidia continues to grow. Nvidia has no limits since their TAM is every industry and every enterprise as well as every person in the world who is interested in using AI compute.
Comments
As someone who uses AI all day it all makes sense. However, if AI is going to have serious impact white collar jobs as some people predict, the demand will decline. People without jobs won't pay for expensive subscriptions or API prices and the economy will be in recession.
For me the important question is where the economy will be in the next 5 years. Because if the economy is doing well, I have no doubt the AI demand will continue to sky rocket. I don't think it matters to Nvidia how uses their compute, closed or open models. The win either way.
Everyone looks way to narrow on nations.
AI compute and AI usage is a global thing.
Look at South Korea in the 70s and today. Technology helped South Korea to leapfrog many Western companies in a few decades.
It will happen again. Many 3rd world countries have better mobile phone networks than Europe while they basically have ZERO copper in the ground.
While in Western countries everyone is skeptical about AI, Asian countries are building robot armies to replace Western collar workers. So we think about regulation and bubbles while others think of how leapfrogging us. Invest and cost is 2 sides of the same coin. It's obvious what we see here and what others see around the globe.
Nvidia already announced in 2023 a partnerhsip for a 2 GW system in India. That was before even Blackwell was released. Back then that was a bigger deal than any Hyperscaler.
Do people seriously think that data centers and AI compute is only built in US? WTF?
Hyperscalers reach their limit in CapEx while Nvidia continues to grow. Nvidia has no limits since their TAM is every industry and every enterprise as well as every person in the world who is interested in using AI compute.