🏭 𝗖𝗼𝗺𝗺𝗼𝗱𝗶𝘁𝗶𝘀𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗟𝗟𝗠𝘀 𝗶𝘀 𝘁𝗵𝗲 𝗻𝗮𝗺𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗴𝗮𝗺𝗲, 𝗶𝗻𝗱𝗲𝗲𝗱. 🏭 👉 I think you can replace all these company-named dogs with countries... they're all going to be useless and dependent on NVIDIA 👉 What NVIDIA is applying now is a similar strategy to what Google applied a decade ago... with all the data from advertising, search-content, etc. they started rolling out verticals to compete with some of their biggest customers.... 👉 At the end of the day, the training phase for LLMs will be over and we will enter a new era... and time will tell whether NVIDIA's move into its own LLM at a massive cost-advantage will pay off in the long-run. 𝗪𝗵𝗮𝘁 𝗱𝗼 𝘆𝗼𝘂 𝘁𝗵𝗶𝗻𝗸?? 𝗦𝗵𝗮𝗿𝗲 𝘆𝗼𝘂𝗿 𝘁𝗵𝗼𝘂𝗴𝗵𝘁𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 𝘀𝗲𝗰𝘁𝗶𝗼𝗻! *********************** 𝗞𝗶𝗻𝗱𝗻𝗲𝘀𝘀. 𝗔𝗹𝘄𝗮𝘆𝘀. 𝗪𝗶𝗻𝘀. *********************** 👉 Looking for more insights on venture and business building and inspiring leadership? 𝗙𝗼𝗹𝗹𝗼𝘄 𝗺𝗲! 🌟 𝗠𝗲𝘀𝘀𝗮𝗴𝗲 𝗺𝗲 if you need advice on: • Venture and digital factory building • Modern, servant, heart-centric leadership • Tech scaling 👍🏼Like & 🔗Share if you feel this post adds value!
NVIDIA is now the world’s most valuable company🤑 Will they stay there? My thoughts👇 1️⃣ LLMs will soon power majority of workflows but get commoditized and are hard to defend if not deeply embedded in applications/partnerships 2️⃣ Training high-performing LLMs is an arms race with costs splitting approx into 60% compute infra + 20% energy + 10% data labeling/licensing + 10% personnel and others 3️⃣ Value capture follows gravity with NVIDIA capturing most $$ across the stack today. While LLM providers start to insource and look for alternatives, they’re still dependent, strengthening NVIDIA position by the hour 4️⃣ NVIDIA gross margin is 75% and launching their own LLM Nemotron last week was the smartest move 5️⃣ Why? If 60% of LLM training costs are hardware and NVIDIA takes 75% gross margin on it, they can undercut other LLM providers by 3/4 on 60% = 45%, almost halfing the total training costs To sum up, if LLMs get commoditized and exclusive integration partnerships are rare, it becomes primarily about costs. LLM providers pushed NVIDIA to become the world’s most valuable company. Now NVIDIA starts eating their customers lunch while exploiting their dependence: Top performance at half the cost and nobody’s able to compete on price at scale. My conclusion: Future if bright for NVIDIA. Keep the flywheel going📈 What do you think? Join 29k+ thought leaders from VCs like a16z, Accel, Index, Sequoia, and more to never miss an update via https://lnkd.in/dXFzFqBh Photo credits Oliver Molander
Always ahead... Keep going.