I understand it is the former. They basically give money to be spent on compute, meaning it goes to hyperscalers who themselves buy NVIDIA GPUs. That’s how you end up with OpenAI and Anthropic together representing more than 70% of the hyperscalers AI revenue, and >40% of the overall Google cloud revenue.
Another thing NVIDIA does: when hyperscalers are looking for debt to build more datacenter capacity, NVIDIA offers to be a backstop in case the compute isn’t actually used. If we take CoreWeave for example, NVIDIA has ownership in it, and also sell them GPUs, and also goes to the banks telling them they will for sure buy the unused capacity as a way to reduce the bank risks.
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I understand it is the former. They basically give money to be spent on compute, meaning it goes to hyperscalers who themselves buy NVIDIA GPUs. That’s how you end up with OpenAI and Anthropic together representing more than 70% of the hyperscalers AI revenue, and >40% of the overall Google cloud revenue.
Another thing NVIDIA does: when hyperscalers are looking for debt to build more datacenter capacity, NVIDIA offers to be a backstop in case the compute isn’t actually used. If we take CoreWeave for example, NVIDIA has ownership in it, and also sell them GPUs, and also goes to the banks telling them they will for sure buy the unused capacity as a way to reduce the bank risks.
So you can add that to the whole circular thing