The Hater's Guide To NVIDIA
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NVIDIA dominates the AI hardware market by selling increasingly expensive GPUs (from $10,000 A100s to $30,000+ B200s) that power large language models. The company's success depends on customers—primarily Microsoft, Google, Meta, and Amazon—continuously purchasing new GPU generations, often funded through massive debt. Building a small 25MW AI data center costs over $1 billion, with $600 million for GPUs alone, plus 20 acres of land and 6-18 months of construction. Despite NVIDIA's $50+ billion quarterly revenue and 8% weight in the S&P 500, the underlying economics appear unsustainable: AI companies generate only ~$61 billion in revenue annually while spending hundreds of billions on infrastructure, with no clear path to profitability.
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Subscribe to Ed Zitron's Where's Your Ed AtNVIDIA’s Latest Generation Blackwell GPUs Require Entirely New Servers - And If You Want To Run Lots Of Them, An Entirely New Data Center, Because They Require So Much More Power And CoolingLet Me Explain To You How Expensive And Arduous It Is To Actually Build A Data Center, And Remind You That Every Single Time Anybody Buys NVIDIA GPUs They're Probably Dealing With This5 Comments
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