Ben Gilbert: belief

Transcript context

…I’ll buy that. I think there’s a lot of that. So bull case one, Jensen is right about accelerated computing. Bull case two, Jensen is right about generative AI. combined with accelerated computing, this will massively shift spend in the data center to Nvidia’s hardware. And as we’ve mentioned, OpenAI is rumored to be doing over a billion dollars in recurring revenue on ChatGPT. I think there’s (let’s call it) $3 billion because that’s the most credible estimate that I’ve heard; maybe that was a forecast for next year. But they’re not the only one. Google with Bard, which I’ve found tremendously useful, actually, preparing for this episode, is not directly monetizing that, but they’re retaining me as a Google search customer by doing it. There is a lot of real economic value even today, not nearly the amount that’s baked into the valuation. I suppose the bear case of this is that everything has to go right for Nvidia, but the bull case is indications that things are going right for Nvidia. Third bull case is that Nvidia just moves so fast. Whatever the developments are, it’s hard to believe that they’re not going to find a way to be really well-positioned to capture it. That’s just a cultural thing. Four is the point that you brought up earlier, that there’s a trillion dollars installed in data centers, $250 billion more being spent every year to refresh and expand capacity, and that Nvidia could take a meaningful share of that. I think today what’s their annual revenue at, like $30 billion or something? If you run rate this current quarter, then it’s at like $50, $50-plus billion.…

Stored transcript either side of the excerpt. The highlighted words are the published quote; the surrounding text is unedited source, never generated.