Here's How Nvidia's Incredible AI Success Could Lead to Its Undoing
Nvidia (NASDAQ: NVDA) was able to ride the artificial intelligence (AI) wave kicked off by ChatGPT in late 2022 and dominate the market for AI accelerators, partly because the company had spent years building a strong foundation in accelerated computing. Nvidia's GPUs are useful not only for AI workloads, but also across academia and industry for running simulations and doing other computing-intensive tasks.CUDA, Nvidia's proprietary software toolkit that allows developers to harness the power of the company's GPUs, has been around for nearly two decades. The vast ecosystem around CUDA was an enormous advantage for Nvidia when the AI boom started. With tech giants and start-ups moving fast to pull ahead in the AI race, Nvidia's GPUs were the path of least resistance.When the market for data center GPUs was much smaller, it made no sense for Nvidia's customers to spend the engineering resources necessary to free themselves from their dependence on CUDA. The return on investment just wasn't there.Continue reading
Nvidia (NASDAQ: NVDA) was able to ride the artificial intelligence (AI) wave kicked off by ChatGPT in late 2022 and dominate the market for AI accelerators, partly because the company had spent years building a strong foundation in accelerated computing. Nvidia's GPUs are useful not only for AI workloads, but also across academia and industry for running simulations and doing other computing-intensive tasks.
CUDA, Nvidia's proprietary software toolkit that allows developers to harness the power of the company's GPUs, has been around for nearly two decades. The vast ecosystem around CUDA was an enormous advantage for Nvidia when the AI boom started. With tech giants and start-ups moving fast to pull ahead in the AI race, Nvidia's GPUs were the path of least resistance.
When the market for data center GPUs was much smaller, it made no sense for Nvidia's customers to spend the engineering resources necessary to free themselves from their dependence on CUDA. The return on investment just wasn't there.
