https://www.reuters.com/technology/global-markets-marketcap-pix-2024-02-23/
Nvidia is certainly doing well. Reaching 2 trillion market cap, and pushing towards top 3 largest company in the world by valuation.
AI is certainly the hot topic, particularly since end of 2022 with the launch of ChatGPT. But GPT models have been around since 2018. GPT-2 was capable in generating text fooling most human. GPT-3 was deemed to be “too dangerous” as the excuse for not open sourcing it. With the restricted access, some developers were about to push ahead building up interesting use cases. ChatGPT, with GPT-3.5 at launch, amazed most users. And I guess the rest is history… Or is it?
This is still the beginning of wider adoption of AI. At most, the 2nd innings. It is a very important phase, but certainly not even close to a mature market.
Apple is the obvious one not using Nvidia for AI in their devices, choose to build their own Neural Engine since 2017. Long story, click here to read this article about it.
Microsoft, Meta, Amazon, Google, all building their own AI chips too. This article sums it up quite nicely. “What’s revenue to Nvidia is a cost for the tech giants.” That’s why they are pushing ahead with building their own chips whilst still using Nvidia until they are ready. And these tech giants will be the major user of AI chips as typical users will not have the need, the data lakes and the money to train a “competitive” model.
Nvidia is well known in not playing nice with others in the industry. They have been building great GPUs, but mainly been milking the gaming market over the years. Linus Torvalds famously made his feelings towards Nvidia public. And most developers know Nvidia is on the expensive side. But for now, as they are the best option around, they are still winning.
Other interesting articles:
- https://www.fool.com/investing/2024/01/12/will-nvidia-be-worth-more-than-apple-by-year/
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