Ben Gilbert: observation

Transcript context

…One customer for one use case at that one customer Crazy. I mean, you see this show up in their earnings. We're at the part of the episode where we're close enough to today that it's best illustrated by the today number. I'll just flash forward to what the data center segment looks like now. Two years ago, they had about $3 billion of revenue and it was only about half of their gaming revenue segment. Gaming, through all this, through 2006, to AlexNet all the way to another decade forward to 2020, gaming is still king. It generates almost $6 billion in revenue. The data center revenue segment was $3 billion but had been pretty flat for a couple of years. Then insanely, over the last two years, it 3X'd the data center segment. It is now doing over $10.5 billion a year in revenue and it's basically the same size as the gaming segment. It's nuts. It's amazing how it was sort of obvious in the mid-2010s. But when the enterprise really showed up and said, we're buying all this hardware and putting it in our data centers. Whether that's the hyper scalars like cloud folks—Google, Microsoft, Amazon—putting it in their data centers, or whether it's companies doing it in their own private clouds or whatever they want to call it these days on prem data centers, everyone is now using machine learning hardware in the data center. NVIDIA is selling it for very, very, very healthy, gross margins, Apple level gross margin.…

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