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Follow the GPUs Perspective

Oct 09, 2023 - news.bensbites.co
The article discusses the rapid acceleration of the Generative AI wave, driven by Nvidia's Q2 earnings and the subsequent demand for GPUs and AI model training. However, it raises questions about the purpose of these GPUs and the value they need to generate for the investment to pay off. The author suggests that for every $1 spent on a GPU, about $1 needs to be spent on energy costs to run the GPU in a data center, implying a need for substantial revenue generation to justify the investment.

The author also highlights a gap in the AI market, suggesting that even with generous revenue assumptions from major tech companies, there is still a $125B+ hole that needs to be filled each year. The author sees this as an opportunity for startups to create real end-customer value using AI technology. The article concludes by emphasizing the need to shift focus from infrastructure to end-customer value and to leverage AI technology to improve people's lives.

Key takeaways:

  • The Generative AI wave has accelerated due to Nvidia's Q2 earnings guide and subsequent beat, signaling a high demand for GPUs and AI model training.
  • Investments in AI are happening at a rapid pace and at record valuations, but questions remain about the use of GPUs and the value that needs to be generated for the investments to pay off.
  • There is a large opportunity for startups to fill the gap in the AI market, with the goal of leveraging AI technology to create real end-customer value.
  • The AI infrastructure build out is happening and the focus needs to shift towards creating products that customers use every day, love and are willing to pay for.
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