Nvidia extends its AI ambitions to the cloud | Financial Times
Nvidia said it is moving faster to a “new business model” of selling AI services directly to large companies and governments, potentially putting it on a collision course with the big tech companies that are its largest customers.
The move comes as some of the leading tech companies are designing chips to handle the huge data-crunching demands of AI, reducing their need for Nvidia’s chips in the long term.
I am not writing about their stock prices, but this requires deliberation. The competition for AI in the cloud chips is hotting up, as big tech is moving towards its own designs. The move, I believe, is to lower the per-unit economics. I haven’t seen the comparison between Nvidia and say Google’s Titan Chip, but if Google is driving down prices (and realising better margins on cloud services), why not?
I still remain convinced about having on-premises hardware because of usurious costs of data egress, and the fact that there is no guarantee of security despite the “ironclad agreements”.
Interesting times.
RadOncNotes 