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NVidia the Shovel maker of AI Gold Rush
- As AI becomes more prominent, Nvidia's earnings have grown rapidly, with its GPU being required for AI processing. Similar to the California Gold Rush, with the people selling the equipment, being the real winners, making the GPU market so profitable.
- Nvidia has a near-monopoly in the GPU market with AMD being the only manufacturer close to competing, with Nvidia dominating with around 80% of GPUs sold today being Nvidia products.
- Nvidia has the cuda architecture that runs exclusively on their GPUs, and this is not open source, any company even close to reverse engineering it, Nvidia will sue.
- Nvidia has the real competitive advantage aka “moat” which puts its business in the driver's seat, as they control the hardware and software.
- Companies which become super-rich sell the most boring things, which are required for daily living.
- As and when open-sourced options will come to the GPU market, Nvidia is expected to lose its dominance. Moreover, Nvidia is not a monopoly in the ARM architecture market, which is what Apple uses.
- AI's true definition needs to be acknowledged since Artificial intelligence is actually the rehashing of an earlier term called machine learning.
- It takes a considerable amount of computation and time to run the AI models with millions of GPUs in farms each that cost $250,000 usd.
- It is not easy to breach Nvidia’s “moat” build over several years of research and innovation.
- Nvidia’s stock skyrocketed, and it is the biggest company in the world by market cap ($3.621 T) as of Nov 2024.
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