Nvidia's chips are improving at such a staggering pace that it defies any historical comparison. Why it matters: Without these gains — which are drawing increased attention as AI transforms society — physics would slam the brakes on the data center boom. Driving the news: Nvidia CEO Jensen Huang said Monday he expects the company to reap "at least" $1 trillion in revenue for its newest chips through 2027. - It posted record sales and earnings last month , fueled by skyrocketing orders from Big Tech data center companies. By the numbers: Nvidia has historically dominated the market. But its cumulative share has dropped from 100% in the first quarter of 2022 to 65% in the fourth quarter of last year, according to the research and…
AI may never be as cheap to use as it is today. Why it matters: AI companies are hooking users with low prices that won't last — straight out of the Amazon and Uber playbook. The big picture: The push to show profits before IPOs could end the era of cheap AI. - "These LLM companies are going to go public and they're going to raise prices because they have to," May Habib, CEO of Writer, told Axios. State of play: New models from OpenAI, Google and Anthropic are generally getting faster and cheaper. - The industry was fixated on training chips. Now Nvidia and its rivals are focused on inference — the computing that lets models answer your questions. - Aggregate token pricing — the cost of generating text — has fallen, partly due…
Meta is doubling down on Nvidia AI chips , committing to spend tens of billions of dollars on the chipmaker's newest offerings and sending shares of both companies higher. Why it matters: Even though Meta is already one of Nvidia's biggest buyers, the deal is so big that it stands to boost both companies. Driving the news: Meta will buy millions of chips from Nvidia, ranging from standalone Grace CPUs to next-gen Blackwell GPUs and upcoming Vera Rubin systems, to use across its U.S. data center buildout. - This makes Meta the first Big Tech firm to commit to buying standalone central processing units from Nvidia, which are used to run AI rather than train AI. - This signals a shift toward inference over training, with the latter…