Nvidia's meteoric rise to $3 trillion | About That
Summary
TLDROver the past decade, NVIDIA has emerged as a formidable player in the tech industry, surpassing giants like Apple and Microsoft to become the world's second most valuable company. Originally known for its graphics processing units (GPUs) used in gaming, NVIDIA revolutionized its technology to excel in AI and scientific computing. This shift, driven by CEO Jensen Huang, led to the creation of AI supercomputers and GPUs that accelerated deep learning and AI research. As a result, NVIDIA now dominates the AI chip market, with its GPUs crucial for innovations ranging from AI models like ChatGPT to scientific simulations and drug discovery.
Takeaways
- 🚀 Nvidia has emerged as a strong contender in the battle for the most valuable company in the U.S.
- 🕹️ Nvidia was primarily known for its GPUs, which transformed gaming graphics.
- 📈 The company's stock remained flat for decades until a pivotal idea by CEO Jensen Huang.
- 🔍 Jensen Huang envisioned using GPUs for more than just graphics, aiming for complex scientific calculations.
- ⚡ The idea was to combine GPUs with CPUs, creating a supercharged processing power for efficient parallel processing.
- 💡 This innovation led to the development of AI supercomputers, significantly accelerating AI research.
- ⛏️ Bitcoin miners were early adopters of Nvidia's GPUs due to their high processing power.
- 🤖 Nvidia's AI supercomputers became crucial for training AI models, exemplified by their partnership with OpenAI.
- 💥 The popularity of AI models like ChatGPT drove a massive demand for Nvidia's GPUs, skyrocketing their share price.
- 🌍 Nvidia's GPUs are now used in various fields, from drug discovery to climate modeling, highlighting their wide-ranging impact.
Q & A
What has been the recent development in the competition among the most valuable companies in the U.S.?
-A new challenger, NVIDIA, has emerged, surpassing Apple and threatening Microsoft's position as the most valuable company.
What product does NVIDIA primarily sell?
-NVIDIA primarily sells GPUs (Graphics Processing Units).
How did NVIDIA become so valuable seemingly out of nowhere?
-NVIDIA's GPUs, originally known for gaming, found new applications in areas like AI, scientific research, and cryptocurrency mining, significantly boosting the company's value.
What was NVIDIA originally known for?
-NVIDIA was originally known for transforming video game graphics with their GPUs, making gaming visuals much more realistic and immersive.
What idea did NVIDIA's CEO Jensen Huang have to expand the use of GPUs?
-Jensen Huang had the idea to develop a software platform that allowed GPUs to work with CPUs, greatly enhancing processing power for various applications beyond gaming.
How did the cryptocurrency industry initially benefit from NVIDIA's technology?
-Bitcoin miners used NVIDIA graphics cards to create mining rigs, taking advantage of the GPUs' parallel processing capabilities to mine cryptocurrencies more efficiently.
What was the significance of the DGX-1 supercomputer developed by NVIDIA?
-The DGX-1 supercomputer, combining eight of NVIDIA's GPUs, was pivotal in advancing AI research by providing unprecedented processing power for training deep-learning models.
Which notable AI company did NVIDIA collaborate with early on?
-NVIDIA collaborated with OpenAI, providing them with a prototype of their AI supercomputer, which played a significant role in advancing AI technologies like ChatGPT.
How did the emergence of ChatGPT impact NVIDIA's market position?
-The success of ChatGPT and similar AI technologies demonstrated the immense potential of NVIDIA's GPUs in AI, leading to a surge in demand and a significant increase in NVIDIA's share price.
What broader impact is NVIDIA's technology expected to have on various industries?
-NVIDIA's technology is being used to simulate cell reactions for drug discovery, create earth replicas for climate change predictions, and train AI models, indicating its potential to revolutionize multiple fields.
What market share does NVIDIA currently hold in the AI chip market?
-NVIDIA controls approximately 90% of the AI chip market, far ahead of its competitors.
Why are NVIDIA's AI chips considered valuable despite their high cost?
-NVIDIA's AI chips offer unparalleled processing power and efficiency for training AI models, justifying their high prices and making them essential for companies investing in AI research and development.
Outlines
🔍 Unveiling the New Contender
Andrew discusses the decade-long competition among four major U.S. companies to be the most valuable. He introduces a new challenger, NVIDIA, which has recently surged in value due to its GPUs, a crucial component in gaming and now in various high-demand applications.
🚀 The Rise of GPU Mining
Andrew explains how NVIDIA's GPUs, initially known for enhancing gaming experiences, found new applications in scientific calculations and cryptocurrency mining. Jensen Wong, NVIDIA's CEO, envisioned GPUs being used beyond graphics, leading to the development of a software platform that leverages both CPUs and GPUs for enhanced processing power.
🧠 NVIDIA's AI Revolution
NVIDIA's breakthrough came when they created the DGS-1 AI supercomputer, which they presented to researchers, including those at OpenAI. This marked the beginning of NVIDIA's dominance in AI, with their GPUs being pivotal in training AI models like ChatGPT, leading to a significant rise in the company's value and influence in the AI industry.
Mindmap
Keywords
💡NVIDIA
💡GPU (Graphics Processing Unit)
💡AI Supercomputer
💡Deep Learning
💡ChatGPT
💡Parallel Processing
💡Jensen Huang
💡Artificial Intelligence (AI)
💡Generative AI
💡AI Chip Market
Highlights
NVIDIA, previously known mainly to PC gamers for their GPUs, has surged in value and is now one of the world's most valuable companies, surpassing Apple and challenging Microsoft.
The company's CEO, Jensen Wong, envisioned using GPUs for more than just graphics, proposing their use in complex scientific calculations.
GPUs can perform many tasks in parallel, making them ideal for accelerating scientific computations and AI model training.
NVIDIA developed a software platform allowing CPUs to leverage GPUs, significantly enhancing processing power.
This innovation led to a massive increase in NVIDIA's share price, which has risen by almost 450% since January last year.
Bitcoin miners quickly adopted NVIDIA's GPUs for their processing power, further boosting the company's market presence.
Jensen Wong aimed higher, creating an AI supercomputer by connecting multiple GPUs and using new software to enhance their performance.
NVIDIA's AI supercomputer prototype, DGS-1, was given to OpenAI, aiding in the development of advanced AI models like ChatGPT.
Generative AI models, such as ChatGPT, require enormous processing power, which NVIDIA's GPUs can provide efficiently.
NVIDIA's GPUs are now used for a wide range of applications, including drug discovery and climate change simulations.
NVIDIA controls about 90% of the AI chip market, with their GPUs becoming essential for training AI models.
The company's innovations have positioned it as a critical player in the AI industry, with their GPUs being a key component in major AI projects.
NVIDIA's success is compared to the early days of the internet, providing a platform for future technological advancements.
The high demand for NVIDIA's GPUs has allowed the company to charge premium prices, with some chips costing between $20,000 to $30,000.
OpenAI used around 10,000 of NVIDIA's GPUs to train the original ChatGPT model, highlighting the scale of AI's computational requirements.
Transcripts
>> Andrew: FOR OVER A DECADE,
THERE'S BEEN A BACK AND FORTH
BATTLE IN THE U.S. BETWEEN FOUR
COMPANIES, ALL VYING TO BE THE
MOST VALUABLE.
ALL FOUR OF THEM ARE HOUSEHOLD
NAMES WITH PRODUCTS MOST OF US
USE ALMOST EVERY DAY.
BUT THEN SEEMINGLY OUT OF
NOWHERE, A NEW CHALLENGER
APPEARS.
A COMPANY THAT, FOR MOST PEOPLE,
HAS MANAGED TO STAY UNDER THE
RADAR UNTIL NOW.
>> THE PAST COUPLE OF MONTHS,
NVIDIA THE WORLD'S SECOND MOST
VALUABLE COMPANY.
>> EVERYBODY WANTS THEIR STUFF,
AND THERE'S A HUGE LINE WAITING
FOR PEOPLE TO BUY THEM.
>> Andrew: THE AVERAGE PERSON
MIGHT NEVER HAVE HEARD OF THIS
COMPANY.
IT ONLY SELLS ONE PRODUCT, BUT
IT MADE A LOT OF MONEY VERY
QUICKLY, TO THE POINT WHERE IT'S
NOW SURPASSED APPLE AND IT'S
THREATENING MICROSOFT FOR THAT
TOPMOST VALUABLE SPOT.
HOW DID THAT HAPPEN?
EVERY TIME YOU'RE EXPLORING A
VIRTUAL WORLD, TRACKING DOWN
OUTLAWS, TRACKING BATTLE ROIL OR
RACING DOWN RAY BOW ROAD, EVERY
SINGLE DETAIL -- THE TEXTURE,
THE LIGHTING, THE MOTION IS ALL
POSSIBLE BECAUSE OF A GPU OR
GRAPHIC PROCESSING UNIT, A
SPECIALIZED HARDWARE THAT WORKS
IN THE BACKGROUND, PROCESSING
MILLIONS OF TINY PIXELS CREATING
THE CRYSTAL CLEAR ULT WHERE
SMOOTH GAME PLAY WE COME TO THE
TODAY.
FOR DECADES, THIS IS WHAT NVIDIA
WAS KNOWN FOR.
THEIR WORK TRANSFORMED THIS INTO
THIS.
LITERALLY, ADDING A BRAND NEW
DIMENSION TO GAMING.
NOW IF YOU'RE NOT INTO THIS KIND
OF STUFF, MAYBE YOU'RE THINKING,
HEY, THAT LOOKS PRETTY GOOD FOR
A VIDEO GAME.
BUT IF YOU KNOW, YOU KNOW.
GAME GRAPHICS HAVE GOTTEN SO
MUCH BETTER.
>> THIS IS MADNESS.
>> IT'S ALL MADNESS.
FINISH THE MISSION.
>> NOTHING QUITE MATCHES THE
EXPERIENCE OF BOXING AND
SLOTTING IN A NEW GPU TO TURN A
RUN OF THE MILL COMPUTER INTO A
GAMING BATTLE STATION.
BUT UNLESS YOU'RE A PC GAMER.
THERE WAS NO REAL REASON FOR
PEOPLE TO KNOW NVIDIA EXISTED.
THIS IS WHAT ITS SHARE PRICE
LOOKED DECADES.
PRETTY FLAT, RIGHT?
WELL, THAT IS UNTIL THE C.E.O.
JENSEN WONG HAD AN IDEA.
WHAT IF THEIR GPU CHIPS COULD BE
USED FOR MORE THAN JUST
GRAPHICS?
WHAT IF RESEARCHERS COULD USE
THEM TO DO SUPER COMPLICATED
SCIENTIFIC CALCULATIONS WAY
FASTER THAN EVER BEFORE?
>> I THINK YOU RECOGNIZED EARLY
ON BECAUSE THE NATURE OF HOW
GPUs WORK VERSUS GPUs, IS THEY
DO A WHOLE BUNCH THINGS IN
PARALLEL.
THEY WERE SMART ENOUGH TO
RECOGNIZEB
THEY ARE WORKING IN PARALLEL,
MEANING, THEY CAN DO SIMPLER
TASKS, MUCH MORE QUICKLY.
BUT JENSEN'S IDEA WAS TO COMBINE
THE TWO.
DEVELOP A SOFTWARE PLATFORM THAT
WOULD ALLOW A COMPUTER'S CPU TO
LEVERAGE THE GPU, IT SUPER
CHARGE ITS OWN PROCESSING POWER.
IN EFFECT, HE WAS CREATING A WAY
FOR THE HEAD CHEF AND THE LINE
COOKS TO WORK TOGETHER MORE
EFFICIENTLY, SO THEY COULD ON
THE TASKS THEY WERE BEST AT,
TAKING THE WHOLE KITCHEN INTO
OVERDRIVE.
>> BY ADDING THE GPU TO THE CPU,
THE SPECIALIZED PROCESSOR CAN
TAKE SOMETHING THAT TAKES A
GREAT DEAL OF TIME AND
ACCELERATE IT DOWN TO SOMETHING
THAT IS INCREDIBLY FAST.
BECAUSE THE TWO PROCESSORS CAN
WORK SIDE BY SIDE -- THEY ARE
BOTH AUTONOMOUS AND SEPARATE,
INDEPENDENT -- WE CAN ACCELERATE
WHAT USED TO TAKE A HUNDRED
UNITS OF TIME DOWN TO ONE UNIT
OF TIME.
>> Andrew: THERE WAS A LOT OF
PROMISE IN THIS IDEA.
BIT COIN MINERS WERE QUICK TO
REALIZE THIS.
THEY ACTUALLY STARTED BUYING UP
NVIDIA GRAPHICS CARDS, STREAMING
SEVERAL OF THEM TOGETHER TO
CREATE MINING, INCREDIBLY DO
SOMETHING FAST.
>> JOSH HERE.
SHOW YOU MY GPU MINING RIG,
WHICH IS $800 IN THE U.S..
>> Andrew: BUT JENSEN SET HIS
SIGHTS HIGHER.
HIS GOAL WAS TO CREATE WHAT IS
CALLED AN A.I.SDS SUPER
COMPUTER.
SOW CONNECTED EIGHT OF HIS
COMPANY'S NEW -- SO HE CONNECTED
EIGHT OF HIS COMPANY'S GPUs
TOGETHER, THEN USE THE COMPANY'S
NEW SOFTWARE, TO HAVE IT ALL
WORK AS ONE.
>> TO BE HONEST WITH YOU, A LOT
OF THE EARLIEST WERE INTERESTING
ACADEMICALLY BUT NOT NECESSARILY
COMMERCIALLY.
>> NOBODY ASKED FOR IT.
NOBODY UNDERSTOOD IT.
I WAS CERTAIN, NOBODY WANTED TO
BUY IT.
>> Andrew: EXCEPT THE TIMING WAS
PRETTY PERFECT, BECAUSE WHILE
NVIDIA WAS WORKING ON THIS, THE
A.I. INDUSTRY WAS REALLY
STARTING TO PICK UP.
>> NOW A COMPETITION IS UNDER
WAY TO ADJUST WHETHER THE LATEST
AND GREATEST SUPER COMPUTER CAN
ACTUALLY THINK.
>> Andrew: REVOLUTIONARY IDEAS
ABOUT HOW TO TEACH THEIR A.I.
MODELS NEW THINGS, DEEP-LEARNING
ALGORITHMS, WAYS OF VACUUMING UP
AND PROCESSING ALL THE DATA OUT
THERE.
BUT WHAT THEY LACKED WAS THE
ACTUAL FORCE TO DO IT UNTIL 2016
WHEN JENSEN HAND-DELIVERED A
PROTOTYPE OF HIS A.I. SUPER
COMPUTER CALLED DGS-1 TO A GROUP
OF RESEARCHERS.
>> IF SOMETHING IS STRONG AND
YOU'RE THINKING OF DOING
EXPERIMENTS WITH IT.
VHS-1 -- DGS-1 WILL ALLOW US TO
DO IT ON A LARGER SCALE.
>> Andrew: DO YOU KNOW WHO HE
GAVE IT TO?
OPEN A.I.
THAT'S THE COMPANY BEHIND
CHAT-GPT IS TECHNOLOGY
ACCESSIBLE AND FREE TO ANYONE ON
THE WEB.
>> THE A.I. PROGRAMME SURPASSED
ONE MILLION USERS IN JUST FIVE
DAYS.
>> EVERYONE IS PLAYING AROUND
WITH IT, ASKING QUESTIONS,
MAKING SCRIPTS, WRITING CODES.
>> Andrew: GENERATIVE AS MODELS
LIKE CHAT-GPT LEVERAGED MASSIVE
AMOUNTS OF DATA.
LIKE BASICALLY, EVERYTHING
THAT'S BEEN ON THE INTERNET.
THE NUMBER OF OPERATIONS IT
TAKES FOR THEM TO PROCESS ALL
THAT DATA IS UNFATHOMABLE.
A.I. RESEARCHERS SAY IT'S MORE
THAN THE NUMBER OF GRAINS OF
SAND ON EARTH, WHATEVER INSANE
NUMBER THAT IS.
UNTIL ONLY RECENTLY, THAT
PROCESSING POWER SIMPLY DID NOT
EXIST.
>> IT'S ONLY RECENTLY IN THE
LAST DECADE OR SO THAT NVIDIA
REALIZED THAT THE SAME MATH THAT
UNDERGURDS GRAPHICS IS ALSO
USEFUL IN TRAINING ARTIFICIAL
INTELLIGENCE SYSTEMS.
REPURPOSE MADE TO BE OPTIMIZED
FOR TRAINING A.I.
>> Andrew: AFTER CHAT-GPT, THE
FLOOD GATES OPENED.
COMPANIES AND INVESTORS SAW WHAT
WAS POSSIBLE WITH THIS POWERFUL
NEW GPU TECHNOLOGY, AND THINGS
EXPLODE FOR ININDIVIDUAL THESE
COMPANIES THAT WERE PREVIOUSLY
CURIOUS ABOUT A.I., BUT NOT SURE
HOW PRACTICAL OR FEASIBLE IT WAS
TO PURSUE, THEY ALL THREW THEIR
HATS INTO THE RING.
>> ALL OF A SUDDEN, ALL MAJOR
WORK WAS BEING DONE WITH NVIDIA.
>> EVERYONE NEEDS THEIR CHIP.
>> WE SHOWED YOU NVIDIA'S SHARE
PRICE EARLIER, THE ONE THAT
DIDN'T BUDGE FOR ALMOST 20
YEARS.
HERE'S WHAT IT LOOKS LIKE NOW.
JUST SINCE JANUARY OF LAST YEAR,
IT'S GONE UP ALMOST 450%.
THE ANALYST WE SPOKE TO SAY A
BIG PART OF THAT RISE IS BECAUSE
NVIDIA CAN JUST CREATE A NEW
PRODUCT PEOPLE WANTED TO BUY.
THEY CREATED AN ENTIRELY NEW
INDUSTRY THAT MAY VERY WELL END
UP CHANGING THE COURSE OF HUMAN
HISTORY.
RESEARCHERS ARE NOW USING
NVIDIA'S CHIP TO DO THINGS LIKE
SIMULATE CELL REACTIONS TO
DISCOVER NEW DRUGS OR CREATE
REPLICAS OF THE EARTH TO PREDICT
MAT CHANGE WILL PLAY OUT.
>> ARTIFICIAL INTELLIGENCE WAS
MADE POSSIBLE BECAUSE OF THIS
COMPLETE BELIEF THAT IF WE MADE
COMPUTING CHEAPER AND CHEAPER,
SOMEBODY IS GOING TO FIND A
GREAT USE.
>> WE LOOK AT THIS AS A MOMENT
LIKE THE INTERNET, RIGHT, LIKE A
PLATFORM WHERE OTHER PEOPLE CAN
CREATE SOFTWARE, CREATE
EXPERIENCES, INVENT THIS NEW
PROTOCOL THAT NVIDIA'S
PROPOSITION IS ANYBODY WHO WANTS
TO GO TRAIN THESE MODELS AND
SCALE, BUILD THESE, NEED TO BE
DOING IT RIGHT ON THE NVIDIA
PLATFORM.
>> Andrew: RIGHT NOW, NVIDIA
CONTROLS SOMETHING LIKE 90% OF
THE A.I. CHIP MARKET.
OTHER CHIP MAKERS ARE RACING TO
CATCH UP, BUT THE ANALYSTS WE
SPOKE TO SAY NVIDIA IS DECADES
AHEAD OF THEM, WHICH IS PART OF
WHY THEY ARE ABLE TO CHARGE
PRETTY ASTRONOMICAL PRICES LIKE
20 TO 30 GRAND PER CHIP IN SOME
CASES.
AND JUST FOR REFERENCE, OPEN
A.I.
USE ABOUT 10,000 OF THOSE CHIPS
TO TRADE THE ORIGINAL CHAT T.
WE'LL LET YOU DO THE MATH ON
THAT ONE
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