Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Unlock the editor’s digest in free
FT editor Raula Khalaf selected his favorite stories in this weekly newsletter.
To a hammer, everything looks like a nail. To the manufacturer that gives power to artificial intelligence, everything looks like “Token”. This is the art of the art for the information units that take the AI model and spit. Nvidia founder Jensen Huang believes that the world is in a token explosion. His company’s $ 3.3TN market capitalization depends on it.
Nvidia has reported $ 44 billion revenue in the three months ended in April, More than 69 percent One year than a year ago, and more expected than analysts, according to LSEG. The company remains the largest beneficiary of the AI Boom, when it comes to state-of-the-art chips, with very few competition-71 percent reflected in gross merges.
This is not without hesitation. Nvidia exports a $ 4.5bn rightdown as a result of the export carbus that has frozen from China, a market company that thinks that can present $ 50 billion of annual revenue. Nvidia has already been forced to sell a few versions of its AI chips to the Republic of the People by the White House. Rightdown would have been even bigger if Nvidia could not re -use selling parts elsewhere.
Fortunately, where a door closes, a window opens. The sales of the company’s new Blackwell AI chips are expanding, apparently faster than expected. For example, Morgan Stanley analysts hoped that the end of July was losing $ 5 billion in a forgotten shipment to China, will bring $ 43.5 billion dollars in the current quarter of July. Instead, the agency says it is expected to remove $ 45 billion even after removing the greater $ 8 billion of lost sales.
Furthermore, a new wave of AI “factories” is sitting to fill a China-shaped hole. Large technology companies from the alphabet to Oracle were already planning mammoth data centers and now the governments are going to this law. Saudi Arabia, the United Arab Emirates and Taiwan are all entering the state-backed “sovereign” AI. Huang is traveling to Europe next week, a trip that can create a more great accent.
Then there is token growth – which means more chip demand – which come from the seeking companies for the growing complex models. Already constructed of data centers 1 percent points have been added The first trimester is the strategist of Apollo Global Management Note near our GDP. Huang argued that “logic” was the introduction of the bot “that thought before answering, the simple, the simple, could end up using a thousand times more data than the previous AI models, Huang argued.
Will they all use the Nvidia chip to do this? Now, it’s the only game in the city. The nearest US rival AMD is only one-sixth of earning. Cerebrus, ambitious Abu Dhabi-backed upstart, starting at the lower base. And that fat gross margin gives a lot of firepower to compete for the Nvidia, if it is necessary. If the tokenization of everything maintains its current speed, there is more to run Nvidia.
