원문 보기
Jim Kramer says the AI race is won by developers, not politics. And Nvidia's strategy proves it. With Google unveiling a new AI chip and OpenAI flirting with a financing backs stop, here's what actually matters. Now, let's watch this. Jensen mentions the crucial thing and people, this is the argument that I think that some in the administration fail to understand, which is you have you have all these developers over the world and that's who you're trying to win over and you don't know whether the developer is going to develop, right?
so-called right on China or on us. Whoever the preponderance writes for wins. And Jensen, I think, is saying in terms of cynicism, look, we don't want the Chinese to win, but the only way to win is to get as many people to many software writers to write on Nvidia and then it doesn't matter. You encircle China.
So then China has to fold. I don't understand why these people in the government don't understand that. Jensen has been say has been saying this for a year that you have to have them. By the way, Apple feels the same way. You got to have people right on your on your No, I I understand. But they were interesting comments from Jensen.
You mean it was peak? It was peak. It was peak. By the way, the first graph of the story is about lower energy costs in China, looser regulation. According to Jim Kramer, Nvidia's approach demonstrates that developers, not politicians, will prevail in the AI race. Here are the things that really count with OpenAI teasing a funding backs stop and Google revealing a new AI processor.
Let's watch this now. Jensen points out the important point and this is the argument that you have all these coders around the world and that's who you're trying to win over that I believe certain members of the government don't comprehend. Furthermore, you have no idea if the developers will work on us or on China to create the so-called right.
The winner is whoever the majority writes for. In terms of cynicism, I believe Jensen is stating that although we don't want the Chinese to win, the only way to do so is to encourage as many people to many software writers to write on Nvidia. After that, it won't matter. You enclose China. China must then submit.
Why these government officials don't get it is beyond me. For the past year, Jensen has been stating that you must have the incidentally thinks the same way people writing on your platform. No, I get it. However, Jensen Huang made some intriguing remarks. You're saying that it peaked? It was at its best.
It was at its best. As an aside, the story's first graph highlights China's lower energy costs and lacks regulations, something we have discussed numerous times. There they are constructing far more nuclear power plants than we can in a shorter amount of time. Even while it is still years, it is now shorter.
They are installing solar power. Once more, it matters that they can generate energy for the AI infrastructure rapidly. It matters then when you can provide subsidies to those businesses and have them I mean free is not but it's right cheap energy. That's crucial. Yes. Renee Hos simply states, "Look, energy is the problem or else we would be on fire during an otherwise outstanding quarter." In addition, I wondered if Rene stock was down or not.
It is down three pre-market if it is down. It was up six last night and is now down three dot. Now, we also have financial markets which are undoubtedly providing the loan and equity financing necessary to provide all of this government backs stop. It wasn't just Jensen Huang retracting some of his remarks about China perhaps winning.
So that's what I wanted to get to. During a discussion at a Wall Street Journal panel yesterday, Sarah Frier, the CFO of Open, made some intriguing remarks regarding the potential for government guarantees to some degree regarding debt that an open eye would take on. For instance, she walked those back.
In a moment, she will stroll back. But before, listen to the comments. This is where we're looking for an ecosystem of banks, private equity, and possibly even governmental ways that governments can contribute, such as a federal subsidy or simply the backs stop, the guarantee that makes the financing possible, which can significantly lower the cost of the financing while simultaneously raising the loan to value of the amount of debt that can be taken on top of an equity portion.
Therefore, there is some federal support for investing in chips. That's right. And I believe that's what we're witnessing. In my opinion, the US administration in particular has been very progressive. Maybe Fanny or Freddy for debt related to AI infrastructure. She did however clarify on LinkedIn, claiming that backs stop confused the issue to back up, but American strength and technology and the rest of it, they're from Sarah Frier.
She did answer precisely when the reporter asked, "It's palpable. The AI war is changing in some way. Jensen Huang is at the center of it once more. In his recent remarks, Jensen brought up an important point that most governments just do not understand. Something that hardly anyone in the media seems to understand.
It's not just about chips and money, he remarked. It has to do with developers because the world is won by whoever wins over the cost. You see, it makes no difference if you're from China or the US. The future of AI is controlled by the side. that has the most engineers working on your ecosystem. And Jensen receives that he doesn't want China to prevail, but he is aware that the only way to defeat them is to ensure that Nvidia is the foundation of every coder, company, and AI researcher.
That's empire building, not simply strategy. Apple shares this sentiment as well. Developers creating iPhone apps are their moat, not hardware. That is what Nvidia is doing. But for the upcoming computing period, the global context is now becoming more heated. China is racing to develop enormous energy capacity, nuclear, solar, or whatever else to power AI infrastructure.
Because energy is AI, they are producing it more quickly than the West can control it. The whole AI dream falls apart in the absence of inexpensive, plentiful energy. In the meantime, businesses like Arm and Renis are making similar claims. The constraint is energy. Even if your chips are the best in the world, they will stall if you can't power them.
The shocking part came next. Sarah Frier, the CFO of OpenA, has suggested a government backs stop. In essence, taxpayer guarantees for loans for AI infrastructure. Yes, that struck a chord. Later, she walked it back, but the harm had already been done. It brought to mind the last time governmentbacked debt spiraled out of control with Fanny May and Freddy Mack.
However, her point remains valid. Because of how capital intensive this AI revolution is, private markets might not be able to handle it all. Trillions of computing buildouts are being discussed. And who is subtly making sure that demand is met? Nvidia as the IT behemoth takes aim at Nvidia. Google today announced that it is launching an internal AI chip that it claims is the most potent and energyefficient yet.
In today's tech check, our McKenzie Seagalos is delving into it. Good morning, Mac. Hello, Carl. Good morning. Thus, Google is making its most potent AI chip available. Ironwood is the name of it. Additionally, it is increasingly becoming a crucial component of its cloud strategy as it leans more toward bespoke silicon.
The chip was first made available for internal testing in April, but it is now being widely available. This is crucial because the battles over cloud computing have officially turned into battles over chips. Additionally, you are already at a disadvantage if you lack your own silicon. Although Microsoft has Maya and Amazon has Tranium, analysts believe Google's in-house processors have an advantage over the competition, which is part of the reason they have been gaining business from competitors.
Google has signed cloud contracts with OpenI, Meta, and Anthropic in the past few months alone. Mizuho now highlights TPUs clear cost and performance advantages. During last week's earnings call, Alphabet CEO Sundar Pitch boasted that TPUs have been one of the main forces behind cloud growth over the past year and that demand is only growing, which is why Google is making significant investments to scale.
Additionally, the optics are helpful. Gemini, Google's proprietary AI model that has been very popular this year is powered by TPUs. Okay, speaking of Nvidia and Mac, Jensen Huang is now retracting remarks he made to the Financial Times asserting that China will prevail in the AI race. What does that look like at the moment?
Thus, we witnessed this reversal. Soon after, the business released a statement on social media that was noticeably gentler than his assertion that China would prevail in the AI race. Additionally, Nvidia is addressing this from all angles at the moment. their export license for their H20 chip is still pending approval.
On that, he is arguing with the US government. Additionally, Beijing is imposing more stringent regulations on both Nvidia and AMD. According to Reuters, China is requiring state sponsored data centers to employ AI processors made in the country. According to Reuters, they are sometimes being compelled to remove foreign devices.
Additionally, Beijing is reviewing Nvidia's chips for national security. According to its CEO, Jensen Hang, their market share in China has now dropped to zero. Then during President Trump and Xiinping's bilateral talks in South Korea last month, there was a lot of expectation that we may make some headway on semiconductor policy, but that hasn't happened.
Therefore, I believe that Nvidia strongly believes that this is a negotiation strategy in a wider trade battle. Okay, I believe this AI data center story will go down in history. This implies that certain skeptics will always be drawn to it. In fact, they are being voted out of even rural places. For these towns, I believe it's a lost chance.
I mean, people look behind me. These stocks are up significantly, aren't they? And they're pricing the majority of the names involved in developing this stuff. They've increased dramatically. But more people are joining the Dow movement as the tale has grown into a multi-trillion dollar undertaking.
One legitimate inquiry is where the money is coming from. Naturally, we now know that the funding for this bar behind me came from loans, free cash flow, and other sources. And I believe that those loans are what have confused some people, especially the off-balance sheet stuff through private lending, which has scared a lot of individuals who were around during the tech bubble. The balance sheet is offbalance.
Comments 0