• Nomecks@lemmy.ca
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    3 months ago

    They’re not building them for themselves, they’re selling GPU time and SuperPods. Their valuation is because there’s STILL a lineup a mile long for their flagship GPUs. I get that people think AI is a fad, and it’s public form may be, but there’s thousands of GPU powered projects going on behind closed doors that are going to consume whatever GPUs get made for a long time.

    • utopiah@lemmy.world
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      3 months ago

      Their valuation is because there’s STILL a lineup a mile long for their flagship GPUs.

      Genuinely curious, how do you know where the valuation, any valuation, come from?

      This is an interesting story, and it might be factually true, but as far as I know unless someone has actually asked the biggest investor WHY they did bet on a stock, nobody why a valuation is what it is. We might have guesses, and they might even be correct, but they also change.

      I mentioned it few times here before but my bet is yes, what you did mention BUT also because the same investors do not know where else do put their money yet and thus simply can’t jump boats. They are stuck there and it might again be become they initially though the demand was high with nobody else could fulfill it, but I believe that’s not correct anymore.

      • Nomecks@lemmy.ca
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        3 months ago

        Well, I’m no stockologist, but I believe when your company has a perpetual sales backlog with a 15-year head start on your competition, that should lead to a pretty high valuation.

      • Bitswap@lemmy.world
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        3 months ago

        but I believe that’s not correct anymore.

        Why do you believe that? As far as I understand, other HW exists…but no SW to run on it…

        • utopiah@lemmy.world
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          2 months ago

          Right, and I mentioned CUDA earlier as one of the reason of their success, so it’s definitely something important. Clients might be interested in e.g Google TPU, startups like Etched, Tenstorrent, Groq, Cerebras Systems or heck even design their own but are probably limited by their current stack relying on CUDA. I imagine though that if backlog do keep on existing there will be abstraction libraries, at least for the most popular ones e.g TensorFlow, JAX or PyTorch, simply because the cost of waiting is too high.

          Anyway what I meant isn’t about hardware or software but rather ROI, namely when Goldman Sachs and others issue analyst report saying that the promise itself isn’t up to par with actual usage for paying customers.