NVIDIA's Expansion into Cloud Services and Impressive Margin Growth

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

NVIDIA's dream is for you to own and operate a DGX super pod. They build their systems full stack, but market them in a flexible and disaggregated way. Whether you want to use their components separately or in the cloud, they aim to provide an exceptional experience. While it was hinted in an interview that they might be building their own cloud, they recently launched DGX cloud. It's possible that more NVIDIA data centers will be fully owned and operated. In terms of numbers, their gross margin was 70% last quarter and they forecast a 72% gross margin for next quarter.

It’s a(nother) new era for Nvidia.

We thought we’d closed the Acquired book on Nvidia back in April 2022. The story was all wrapped up: Jensen & crew had set out on an amazing journey to accelerate the world’s computing workloads. Along the way they’d discovered a wondrous opportunity (machine learning powered social media feed recommendations). They forged incredible Power in the CUDA platform, and used it to triumph over seemingly insurmountable adversity — the stock market penalty-box.

But, it turned out that was only the precursor to an even wilder journey. Over the past 18 months Nvidia has weathered one of the steepest stock crashes in history ($500B+ market cap wiped away peak-to-trough!). And, it has of course also experienced an even more fantastical rise — becoming the platform that’s powering the emergence of perhaps a new form of intelligence itself… and in the process becoming a trillion-dollar company.

Today we tell another chapter in the amazing Nvidia saga: the dawn of the AI era. Tune in!

Sponsors:

Thanks to our fantastic partners, any member of the Acquired community can now get:

Scalable, clean and low-cost cloud AI compute from Crusoe (and listen to our recent ACQ2 interview with CEO Chase Lochmiller)
Your product growth powered by Statsig
Free access to our episode research on Blinkist plus our favorite books on Ben & David’s Bookshelf

More Acquired!:

Get email updates with hints on next episode and follow-ups from recent episodes
Join the Slack
Subscribe to ACQ2
Become an LP and support the show. Help us pick episodes, Zoom calls and more
ACQ hats are back in stock in the ACQ Merch Store!

Links:

Carve Outs:

‍Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.