<div style="page-break-before: always; page-break-after: always;">
<div>
<p><strong>LARGE-SCALE AI PROJECTS</strong> are the hot thing of the moment as every big tech company and hopeful start-up scrambles to build AI systems. Those systems need chips, and the best for training LLMs is Nvidia&rsquo;s H100 Tensor Core GPUs. The success of a new AI project is measured by how many AI cards you can bring to the party. A large project, such as ChatGPT, needs around 50,000 cards. Projects from Google, Meta, and Microsoft will need similar amounts. Start-ups will need 10,000 or so each.</p>
<p>This is good news for Nvidia, and it is expected to sell over half a million H100 GPUs this year. Its cards sell for at least $30,000 each. Demand is such that they reach a $10,000 premium on eBay. Profit margins on GPUs aren&rsquo;t spectacular, but Nvidia is making a fortune on AI GPUs. Analysts estimate that a $30,000 AI accelerator card costs Nvidia $3,320 in parts. Despite considerable development costs, that seems like rich pickings.</p>
<p>The bad news is that this frenzy for AI silicon is spilling over into other markets. Nvidia has scaled back production of Ada Lovelace GPUs and is limiting new card supplies. Sales have been weaker than expected, so some shift was expected. Nvidia has contracts with TSMC which it will honor, but any capacity that can be switched to AI silicon means more profit.</p>
<p>Firms unable to get the AI cards they want are also turning to regular GPUs to do the math. A recent bulk purchase of Radeon RX 7900 XTX cards went to an AI outfit, which stated it was aiming for exaFLOP scale. This would require tens of thousands of graphics cards. If the demand for AI continues, we could see cards disappearing into warehouse racks instead of gaming rigs. AI could be big enough to distort the GPU market as crypto mining did before it.&nbsp;</p>
</div>
</div>

NVIDIA'S AI GOLDMINE

English

Spanish(español)

Bengali(বাঙালি)

Gujarati(ગુજરાતી)

Hindi(हिन्दी)

Malayalam(മലയാളം)

Tamil(தமிழ்)

Telugu(తెలుగు)

Maximum PC

Google Gemini vs. ChatGPT

Frostpunk 2

Elgato Facecam Neo

Elgato Wave Neo

Razer BlackWidow V4 75%

Razer Wolverine V3 Pro

Acer Predator GM712

AndaSeat Kaiser 4 XL

Gigabyte F027Q2

Acer Nitro 14

Download your favorite titles and read them offline, anytime and anywhere

Gift your loved ones with a Magzter Gift Card instantly and give them the freedom to read their favorite magazines and newspapers from thousands of best-selling titles.

Gift your loved ones with a Magzter Gift Card instantly and give them the freedom to read their favorite magazines from thousands of best-selling titles.

Gift your loved ones with a Magzter Gift Card instantly and give them the freedom to read their favorite magazines from {{magCount}}+ best-selling international titles.

Name

Please fill out this form if you need any help regarding publishing your content on Magzter

Since we launched, Magzter has been committed to partnering with global organizations to provide the greatest possible newsstand technology & service to our customers. Whether you are looking to offer magazine subscriptions to your customer database or just want to learn more, Magzter is committed to helping your business grow. To find out more, please fill out the questionnaire below: