Daily Digest: Can't stop growing

PLUS: AI is Nvidia's game

February 12, 2024

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Hello folks, here’s what we have today;

PICKS

  1. OpenAI on track to hit $2bn annualized revenue. And OpenAI’s got the eyes on doubling this in 2025. Here’s a timeline of OpenAI’s revenue reports:

    • $28M in 2022. This was before it started charging for ChatGPT.

    • August 29th 2023 - $1B in annualized revenue. [source]

    • October 12th 2023 - $1.3B in annualized revenue. [source]

  2. Nvidia, the big dog in AI chips, is branching out into custom chips. The chip market is getting crowded and Nvidia wants to keep the throne by making personalized chips for AI companies.🍿Our Summary (also below)

  3. Also, we are doing some light testing on Gemini Advanced across different types of queries: Reading emails, reasoning, complex search and general QnA.

TOP TOOLS

  • What’s that fish - Click a picture, and cook a fish (or any other seafood).

  • Reor - Self-organizing AI note-taking app that runs models locally.

  • Globe Explorer - Visual-hierarchical search on any topic you want.

  • OpenAI Batcher - Run large OpenAI jobs while complying with rate limits.

  • Synthical - Discover, learn, and share science research, made easy with AI.

  • LoudFame - Stylize your video with creative AI filters.

  • AI over your calendar - 10 demos from HF0 Residency’s HackerBowl.

NEWS
QUICK BITES

Nvidia, the big dog in AI chips, is branching out into custom chips. The chip market is getting crowded and Nvidia wants to keep the throne by making personalized chips for AI companies.

What is going on here?

Nvidia is opening up new avenues beyond its traditional offerings of pre-designed chips.

What does this mean?

Nvidia holds a whopping 80% of the high-end AI chip market. Even beyond the stock tripling last year, Nvidia is 40% up YTD.

And still, it isn't resting. It is making a new team that’ll focus on making custom chips for AI companies. Its generalized chips (H100s, A100s etc.) do the job well but tech giants like Google, Microsoft and Amazon are shifting towards in-house chip development, aiming to cut costs and boost efficiency.

Reuters report that this team has met with folks at Amazon, Meta, Microsoft, Google and OpenAI to get them to bet on Nvidia for custom chips too instead of going all DIY.

Btw, this isn’t a new development. Nvidia’s CEO Jensen Huang has been wanting to get into offering custom chips since 2022. And this team is also talking to telecom, automotive and video game customers which total up to a $30B market. Dina McKinney is likely to lead this team.

Sidenote: Google gets its TPUs made by Broadcom, a big custom chips player and reports last year said that Google is thinking about ditching a significant chunk of the deal.

Why should I care?

As the demand for more specialized, energy-efficient chips grows, Nvidia's move to tailor-made chips and not just selling off-the-shelf solutions could boost the company even further.

To quote Anissa from The Information: Nvidia is arguably late to the custom chip field. Major cloud providers including Amazon and Microsoft have developed their own custom AI server chips, which they hope will lower their dependence on Nvidia. However, designing and continuously improving a chip that rivals Nvidia’s won’t be easy, so it is possible these customers could still want to work with Nvidia on custom chips.

Ben’s Bites Insights

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  • All 10k+ links we’ve covered, easily filterable (1 referral)

  • 6k+ AI company funding rounds from Jan 2022, including investors, amounts, stage etc (3 referrals)

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