While economies, central banks and markets today have problems with inflation... Nvidia makes money from inflation... This is of course all about "computation inflation" – see Figure 1.
NVIDIA CEO Jensen Huang at COMPUTEX 2024, Taiwan, June 2, 2024:
“If the data that is that we need to process continues to scale exponentially but performance does not - we will experience computation inflation and in fact we're seeing that right now as we speak.
The amount of data center power that's used all over the world is growing quite substantially, the cost of computing is growing, we are seeing computation inflation. This of course cannot continue, the data is going to continue to increase exponentially and CPU performance scaling will never return.
There is a better way. For almost two decades now we've been working on accelerated Computing Cuda augments a CPU, offloads and accelerates the work that a specialized processor can do much better, in fact the performance is so
extraordinary that it is very clear now as CPU scaling has slowed and event
substantially stopped.
We should accelerate everything I predict that every application that is processing intensive will be accelerated and surely every data center will be accelerated the near future.”
But how to fight that inflation? It’s simple: The more you buy the more you save! – see Figure 2.
“We could accelerate what used to take a 100 units of time down to one unit of time.”
“We add a GPU a $500 to a $1,000 PC and the performance increases tremendously. We do this in a data center, a billion dollar data center, we add $500 million worth of GPUs and all of a sudden it becomes an AI Factory. This is happening all over the world today. Well the savings are quite extraordinary..
1) you're getting 60 times performance per dollar
2) a 100 times speed up you only increase your power by 3x
3) 100 times speed up you only increase your cost by 1.5x
The savings are incredible. The savings are measured in dollars, it is very clear that many companies spend hundreds of millions of dollars processing data in the cloud.
That's the reason why you've heard me say the more you buy the more you
save and now I've shown you the mathematics, it is not accurate but it is
correct, okay that's called CEO math. CEO math is not accurate but it is
correct: the more you buy the more you save.”
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