Broadcom and OpenAI partnership threatens Nvidia
The speaker argued that OpenAI's collaboration with Broadcom to design a custom AI chip represents a highly disruptive development for Nvidia's market dominance.
The argument
The guest noted that the 'jalapeno' chip took only nine months from design to specification, with AI playing a major role in fast-tracking the process. This rapid development cycle demonstrates how custom silicon can be brought to market quickly, potentially reducing industry reliance on Nvidia's hardware.
The thesis, stress-tested
✓ What validates it
- ✓Official performance benchmarks released for the custom OpenAI-Broadcom chip
- ✓OpenAI publicly reducing its forward orders for Nvidia GPUs
▸ Risks discussed
- ▸Nvidia's software ecosystem (CUDA) may still prevent meaningful migration to custom silicon
- ▸Production yields and performance of the custom chip remain unproven in real-world workloads
Hear it yourself
"We are in still the second or third inning of what will be a long build out. And I'm gonna say it to everyone who listens to us every week. Artificial intelligence is the most important thing to happen to the human race from the basis of making things cost less and solving some of the world's problems that have been with us for a long time. Turning longevity into something that's parabolic. Turning the market into something that's parabolic. Most importantly, allowing democratization of education, democratization of people to have as much information as the people I started at the beginning that say this always ends badly."
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE