Eric Schmidt leads Google For a decade, he told Stanford University students that while he wasn’t one to give investment advice, he saw clear performance in the stock market that didn’t involve buying stock in his former employer.
In a video released this week by Stanford University that has since been deleted, Schmidt said big tech companies are planning to make increasingly larger investments in: NVIDIAThe construction cost of an artificial intelligence-based data center may be as high as $300 billion.
“I’m talking to big companies, and big companies are telling me they need $20 billion, $50 billion, $100 billion — very, very difficult,” Schmidt said, adding that he is the CEO of OpenAI, Sam O A “close friend” of Sam Altman.
Schmidt said a large portion of this spending will go to Nvidia, which makes the dominant data center artificial intelligence chips and has experienced three consecutive quarters of revenue growth of more than 200%. Google has developed a Tensor Processing Unit (TPU)which can compete with Nvidia’s processors, but is still in its early stages.
“If all $300 billion goes to Nvidia, you know what to do in the stock market,” Schmidt said. “This is not a stock recommendation.” Schmidt did not disclose whether he holds Nvidia stock.
Schmidt served as Google’s CEO from 2001 to 2011 and served on its board of directors until 2019. he Tell The Wall Street Journal said he asked for the video to be removed because he made the mistake of talking about Google’s lax work culture in the meeting.
But his candid remarks illustrate the driving force behind Nvidia’s rise and the company’s central role in the generative artificial intelligence boom that begins in late 2022.
While Nvidia is seeing soaring demand from cloud companies and developers of leading artificial intelligence models, Wall Street is questioning whether the chipmaker’s top customers are spending too much on artificial intelligence infrastructure. Nvidia will provide an update on market dynamics when it reports quarterly results on August 28
Schmidt said Nvidia won’t be the only winner in artificial intelligence, but there aren’t many other obvious options. For now, he said he believes larger companies that can invest more in Nvidia chips and data centers will gain a technological lead over smaller rivals that can’t spend freely.
“Right now, the gap between leading-edge models — there are only three — and the gap between other models seems to be getting wider and wider,” Schmidt said. “Six months ago, I was convinced the gap was closing, so I invested heavily in smaller companies. Now I’m not so sure.”
Yuan CEO Mark Zuckerbergthe company has purchased approximately 600,000 Nvidia Expensive GPUIt said earlier this month that Meta’s next-generation models (the Llama series) will require about 10 times the computing power.
“The models going forward will continue to move beyond this,” Zuckerberg said on the earnings call.
At the same time, Ultraman It is said Partner with OpenAI’s key supporters Microsoft Spend $100 billion to build an artificial intelligence data center called “Stargate”.
“When Microsoft made the deal with OpenAI, I thought it was the dumbest idea I’d ever heard, essentially outsourcing the AI leadership to OpenAI and Sam and his team,” Schmidt said. “However, they are becoming The most valuable company.”
Schmidt said he would It will be difficult for competitors to catch up The partnership with Nvidia comes about because many of the most important open source tools used by artificial intelligence developers are based on the company’s CUDA programming language. He said AMD’s software that translates Nvidia’s CUDA code for its own chips “doesn’t work yet.”
Schmidt founded the venture capital firm Innovation Endeavors in 2010 and still holds about 147 million Alphabet shares. According to Bloombergworth approximately US$24 billion. In addition to investing in startups, he is a philanthropist and provides technology advice to various government committees.
