{"id":128810,"date":"2024-11-22T13:57:49","date_gmt":"2024-11-22T06:57:49","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=128810"},"modified":"2024-11-22T13:57:49","modified_gmt":"2024-11-22T06:57:49","slug":"three-mystery-whales-have-each-spent-10-billion-plus-on-nvidias-ai-chips-so-far-this-year","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=128810","title":{"rendered":"Three mystery whales have each spent $10 billion-plus on Nvidia&#8217;s AI chips so far this year"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<p>AI microchip supplier <a href=\"https:\/\/fortune.com\/company\/nvidia\/\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/company\/nvidia\/\" rel=\"noopener\">Nvidia<\/a>, the world\u2019s most valuable company by market cap, remains heavily dependent on a few anonymous customers that collectively contribute tens of billions of dollars in revenue.\u00a0<\/p>\n<div>\n<p>The AI chip darling once again warned investors in its quarterly 10-Q filing to the SEC that it has key accounts so crucial that their orders each crossed the threshold of ten percent of Nvidia\u2019s global consolidated turnover.\u00a0<\/p>\n<p>An elite trio of particularly deep-pocketed customers for example individually purchased between $10-$11 billion worth of goods and services across the first nine months that ended in late October.<\/p>\n<p>Fortunately for Nvidia investors, this <a href=\"https:\/\/fortune.com\/2024\/04\/29\/elon-musk-tesla-ai-fsd-china-ev-sales\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2024\/04\/29\/elon-musk-tesla-ai-fsd-china-ev-sales\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" rel=\"noopener\">won\u2019t change any time soon<\/a>. Mandeep Singh, global head of technology research at Bloomberg Intelligence, says he believes founder and CEO Jensen Huang\u2019s prediction that spending will not stop.\u00a0\u00a0<\/p>\n<p>\u201cThe data center training market could hit $1 trillion without any real pullback,\u201d by that point Nvidia share will almost certainly drop markedly from their current 90%. But it could still be in the hundreds of billions of dollars in revenue annually.<\/p>\n<h2 class=\"wp-block-heading\">Nvidia remains supply constrained<\/h2>\n<p>Outside of defense contractors living off of the Pentagon, it\u2019s highly unusual that a company has such a concentration of risk among a handful of customers\u2014let alone one poised to become the first worth the astronomical sum of\u00a0<a href=\"https:\/\/fortune.com\/2024\/07\/07\/nvidia-win-race-4-trillion-market-cap-big-tech-outlook-google-microsoft-amazon-apple\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2024\/07\/07\/nvidia-win-race-4-trillion-market-cap-big-tech-outlook-google-microsoft-amazon-apple\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" rel=\"noopener\">$4 trillion<\/a>.<\/p>\n<p>Strictly looking at Nvidia\u2019s accounts on a three-month basis, there were\u00a0<a href=\"https:\/\/fortune.com\/2024\/08\/29\/nvidia-jensen-huang-ai-customers\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2024\/08\/29\/nvidia-jensen-huang-ai-customers\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" rel=\"noopener\">four anonymous whales<\/a>\u00a0that, in total, comprised nearly every second dollar of sales in the second fiscal quarter, this time at least one of them has dropped out since now only three still meet that criteria.\u00a0<\/p>\n<p>Singh told\u00a0<em>Fortune\u00a0<\/em>the anonymous whales likely include Microsoft, Meta, and possibly Super Micro. But Nvidia declined to comment on the speculation.<\/p>\n<p>Nvidia only refers to them as Customers A, B, and C, and all told they purchased a collective $12.6 billion in goods and services. This was more than a third of Nvidia\u2019s overall $35.1 billion recorded for the fiscal third quarter through late October.\u00a0<\/p>\n<p>Their share was also divided up equally with each accounting for 12%, suggesting they were likely receiving a maximum amount of chips allocated to them rather than as many as they might have ideally wanted.\u00a0<\/p>\n<p>This would fit with comments from founder and CEO Jensen Huang that his company is <a href=\"https:\/\/fortune.com\/2024\/06\/05\/elon-musk-tesla-xai-nvidia-ai-training-chips-cnbc\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2024\/06\/05\/elon-musk-tesla-xai-nvidia-ai-training-chips-cnbc\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" rel=\"noopener\">supply constrained<\/a>. Nvidia cannot simply pump out more chips, since it has outsourced wholesale fabrication of its industry-leading AI microchips to Taiwan\u2019s TSMC and has no production facilities of its own.<\/p>\n<h2 class=\"wp-block-heading\">Middle men or end user?<\/h2>\n<p>Importantly, Nvidia\u2019s designation of major anonymous customers as \u201cCustomer A\u201d, \u201cCustomer B,\u201d and so on is not fixed from one fiscal period to the next. They can and do change places, with Nvidia keeping their identity a trade secret for competitive reasons\u2014no doubt these customers would not like their investors, employees, critics, activists and rivals being able to see exactly how much money they spend on Nvidia chips.<\/p>\n<p>For example, one party designated \u201cCustomer A\u201d bought around $4.2 billion in goods and services over the past quarterly fiscal period. Yet it appears to have accounted for less in the past, since it does not exceed the 10% mark across the first nine months in total.<\/p>\n<p>Meanwhile \u201cCustomer D\u201d appears to have done the exact opposite, reducing purchases of Nvidia chips in the past fiscal quarter yet nevertheless representing 12% of turnover year-to-date.<\/p>\n<p>Since their names are secret it\u2019s difficult to say whether they are middle men like the <a href=\"https:\/\/fortune.com\/2024\/11\/18\/super-micro-auditor-nasdaq-ey-bdo-stock-nvidia\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2024\/11\/18\/super-micro-auditor-nasdaq-ey-bdo-stock-nvidia\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" rel=\"noopener\">troubled<\/a> <a href=\"https:\/\/fortune.com\/company\/super-micro-computer\/\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/company\/super-micro-computer\/\" rel=\"noopener\">Super Micro Computer<\/a>, which supplies data center hardware, or end users like Elon Musk\u2019s xAI. The latter came out of nowhere for example to build up its new <a href=\"https:\/\/fortune.com\/2024\/09\/03\/elon-musk-xai-nvidia-colossus\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2024\/09\/03\/elon-musk-xai-nvidia-colossus\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" rel=\"noopener\">Memphis compute cluster<\/a> in just three months time.\u00a0<\/p>\n<h2 class=\"wp-block-heading\">Longer term risks for Nvidia include the shift from training to inference chips <\/h2>\n<p>Ultimately, however, there are only a handful of companies with the capital to be able to compete in the AI race as training large language models can be exorbitantly costly. Typically these are the cloud computing hyperscalers such as <a href=\"https:\/\/fortune.com\/company\/microsoft\/\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/company\/microsoft\/\" rel=\"noopener\">Microsoft<\/a>.<\/p>\n<p><a href=\"https:\/\/fortune.com\/company\/oracle\/\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/company\/oracle\/\" rel=\"noopener\">Oracle<\/a> for example recently announced plans to build a\u00a0<a href=\"https:\/\/www.oracle.com\/news\/announcement\/ocw24-oracle-offers-first-zettascale-cloud-computing-cluster-2024-09-11\/\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/www.oracle.com\/news\/announcement\/ocw24-oracle-offers-first-zettascale-cloud-computing-cluster-2024-09-11\/\" rel=\"noopener\">zettascale data center<\/a>\u00a0with over 131,000 Nvidia state-of-the-art Blackwell AI training chip, which would be more powerful than any individual site yet existing.\u00a0<\/p>\n<p>It\u2019s estimated the electricity needed to run such a massive compute cluster would be equivalent to the output capacity of nearly\u00a0<a href=\"https:\/\/www.hpcwire.com\/2023\/02\/21\/a-zettascale-computer-today-would-need-21-nuclear-power-plants\/\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/www.hpcwire.com\/2023\/02\/21\/a-zettascale-computer-today-would-need-21-nuclear-power-plants\/\" rel=\"noopener\">two dozen nuclear power plants<\/a>.<\/p>\n<p>Bloomberg Intelligence analyst Singh really only sees a few longer term risks for Nvidia. For one, some hyperscalers will likely reduce orders <a href=\"https:\/\/fortune.com\/2024\/08\/16\/nvidia-eric-schmidt-google-citadel-ken-griffin\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2024\/08\/16\/nvidia-eric-schmidt-google-citadel-ken-griffin\/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks\" rel=\"noopener\">eventually<\/a>, diluting its market share. One such likely candidate is <a href=\"https:\/\/fortune.com\/company\/alphabet\/\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/company\/alphabet\/\" rel=\"noopener\">Alphabet<\/a>, which has its <a href=\"https:\/\/www.cnbc.com\/2024\/07\/29\/apple-says-its-ai-models-were-trained-on-googles-custom-chips-.html\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/www.cnbc.com\/2024\/07\/29\/apple-says-its-ai-models-were-trained-on-googles-custom-chips-.html\" rel=\"noopener\">own<\/a> training chips called TPUs.<\/p>\n<p>Secondly, its dominance in training is not matched by inference, which run generative AI models after they have already been trained. Here the technical requirements are not nearly as state of the art, meaning there is much more competition not just from rivals like <a href=\"https:\/\/fortune.com\/company\/advanced-micro-devices\/\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/company\/advanced-micro-devices\/\" rel=\"noopener\">AMD<\/a> but also companies with their own custom silicon like <a href=\"https:\/\/fortune.com\/company\/tesla\/\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/company\/tesla\/\" rel=\"noopener\">Tesla<\/a>. Eventually inference will be a much more meaningful business as more and more businesses utilize AI.\u00a0<\/p>\n<p>\u201cThere are a lot of companies trying to focus on that inferencing opportunity, because you don\u2019t need the highest-end GPU accelerator chip for that,\u201d Singh said.\u00a0<\/p>\n<p>Asked if this longer term shift to inferencing was the bigger risk than eventually losing share of the market in training chips, he replied: \u201cAbsolutely\u201d.<\/p>\n<\/div>\n<div data-cy=\"subscriptionPlea\"><b>How many degrees of separation are you from the globe&#8217;s most powerful business leaders? <\/b>Explore who made our brand-new list of the <a href=\"https:\/\/fortune.com\/ranking\/most-powerful-people\/?&amp;itm_source=fortune&amp;itm_medium=article_tout\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/ranking\/most-powerful-people\/?&amp;itm_source=fortune&amp;itm_medium=article_tout\" rel=\"noopener\">100 Most Powerful People in Business<\/a>. Plus, learn about the metrics we used to make it.<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/fortune.com\/2024\/11\/21\/nvidia-jensen-huang-ai-training-chips-microsoft-google-amazon-tesla-meta-hyperscalers-cloud-computing\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>AI microchip supplier Nvidia, the world\u2019s most valuable company by market cap, remains heavily dependent on a few anonymous customers that collectively contribute tens of billions of dollars in revenue.\u00a0 &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=128810\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-128810","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/128810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=128810"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/128810\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=128810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=128810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=128810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}