It’s a wrap on this earnings season for AI. With Nvidia reporting yesterday, all of the Big Tech companies have now opined on AI’s $600B question.
Thread below summarizes the takeaways thus far:
So What?
Big Tech is stuck in an arms race with one another. The fear of missing out on what promises to be a once in a generation platform shift requires them to invest, regardless of today’s demand levels.
One year after the $200B question was asked, we still have not heard much about new killer applications. Instead, ChatGPT and coding assistants remain the primary revenue generating applications from AI.
In the absence of new apps from Big Tech, more and more of the discussion has turned to replacing CPUs with GPUs, and to using GPUs for existing workloads, like recommender systems.
And so for startups, the biggest question still remains: What are you going to use all this infrastructure to do? How is it going to change people’s lives? In AI, it’s this long-term question that will make all the difference.