During the 1850s, there was a gold rush in the US. It is reported that the people who were supplying the tools to go find and dig for gold made more than the gold miners themselves!
And today, we are in a ‘AI gold rush’ and Nvidia is the only one selling the supplies.
Since its inception in 1993, Nvidia has primarily been a gaming-focused company.
However, their visionary CEO, Jensen Huang recognized the potential of AI in the early 2010s.
According to Bloomberg, he instructed his team to build a server designed for AI and hand-delivered it to Elon Musk and Sam Altman in 2016.
These “free gifts” have resulted in Nvidia supporting the data structures needed to run Tesla and ChatGPT. It’s safe to say that had Jensen not given free gifts, we would not have seen the light of day for these industry-defining technologies.
Nvidia has just entered the $1 trillion dollar club. It’s the 5th most valued stock in the US, just behind Amazon.
During Q1-FY24, It has made a revenue of $7.19B out of which 60% of revenues came from data centers and the remaining from gaming.
For context, their latest GPU chip the H100 is in huge demand.
Right now, one H100 is priced at $40,000 and every other competitor is 10+ years away from this technology.
After understanding what Nvidia has accomplished I think it is safe to alter the first line of this post: “Show everyone where the gold is.
Then, sell the shovels to start digging for it”
Image Credits: Unknown.
Do mention in the comments if you know who created this image.
