NVIDIA Corporation NVDACoreWeave, a GPU-backed AI infrastructure startup, is taking the AI market by storm as one of the leading providers of Nvidia’s AI chips. The GPU cloud provider actually offers options from a few different companies, but its CEO says no one wants anything other than Nvidia chips.
Things you need to know: CoreWeave co-founder and CEO Tim Cook on CNBC’s “Squawk Box” Wednesday Mike Intrater He highlighted the “relentless” demand for AI chips, which he noted have been heavily skewed towards Nvidia and will continue to be so.
“What we’re seeing in the market is very close to the true demand for this infrastructure, but it’s just not relenting. It’s been seriously imbalanced for the last two and a half years,” Intrater said.
“There’s still a lot of room in our plans, and in the plans our clients are asking us to make.”
CoreWeave’s CEO told CNBC that customers are coming to them with orders, but not saying how much they want, but rather that they’re buying everything that’s available by a certain date. Some companies plan nine months ahead, while others plan a year or more ahead, he added.
Customers are scrambling to grab all the AI chips they can get their hands on because they don’t have enough power to train models and serve those models through inference, Intrator said. Interestingly, customers aren’t looking beyond Nvidia.
“We buy all kinds of silicon and we look at it from a performance standpoint, but at the end of the day, we give our customers what they want, and they want NVIDIA technology. They don’t want anything else,” Intrater said.
“Because I can’t meet my own demand – the Nvidia-based demand – it’s hard for me to know what other demands there are.”
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In Nvidia’s most recent quarter, the company significantly beat revenue and profit estimates for the sixth consecutive quarter and cited continued strong demand for its generative AI training and inference chips.
“The next industrial revolution has begun. Businesses and countries are partnering with NVIDIA to transform their trillion-dollar traditional data centers into accelerated computing and build a new type of data center – the AI factory – to produce a new commodity: artificial intelligence,” said NVIDIA founder and CEO. Jensen Huang That’s what I said at the time.
“AI can deliver significant productivity gains across nearly every industry, helping businesses become more cost and energy efficient and unlocking greater revenue opportunities.”
Nvidia shares are up about 138% year to date, driven by continued demand for the company’s AI chips. Some have compared it to the dot-com bubble, while others argue that AI will continue to drive huge efficiency gains. Others suggest that Nvidia’s stock price rally is just getting started.
NVDA Price Action: At the time of writing, Nvidia shares were down 6.59% to $118.15, according to Benzinga Pro.
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Photo: Courtesy of Nvidia.
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