In a landmark announcement at GTC 2024, NVIDIA launched the Blackwell GPU platform, ushering in an 🗽 unprecedented level of collaboration with Amazon Web Services (AWS), Google Cloud, Oracle, and Microsoft Azure.
This isn't just about cutting-edge technology; it's about forging deeper connections within the cloud ecosystem.
📈 I looked deeper into NVIDIA's cloud partnership strategy in one of my recent newsletters:
Hyperscalers account for over 50% of NVIDIA’s Data Center revenue, which itself constitute 78% of its total revenue.
Astonishingly, this area saw a 409% YoY surge in the last quarter, This surge is rooted in Nvidia's compelling pitch to cloud providers that leverages the familiar multiplier concept:
“$1 upfront investment in NVIDIA compute and networking can translate to $5 in CSP revenue over 4 years”.
💡 But here is a twist - NVIDIA ’s partnerships with CSPs are nuanced
NVIDIA considers hyperscalers among potential competitors. Despite that, hyperscalers remain a key distribution channel and its largest customers.
In addition to insights that Jensen Huang, CEO shared in GTC 2024 (see clip attached):
Nvidia's software products are accessible on hyperscale cloud marketplaces, cementing clouds as both the biggest customers and distributors for Nvidia.
In FY24, NVIDIA launched its DGX Cloud “an AI-training-as-a-service platform which includes cloud-based infrastructure and software for AI, customizable pretrained AI models.”
To host DGX Cloud Nvidia “partnered with leading cloud service providers to host this service in their data centers.”
🎯 As NVIDIA blurs the lines between competing and collaborating with cloud hyperscalers, what does this mean for the future of cloud technology and AI development? Could this herald a new model of tech partnerships?
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