David Rosenthal: belief

Transcript context

…Yeah. All right. Let’s actually do this. Let’s start with the bear case. You just illustrated (I think) bear case number one, which is literally everybody else in the technology ecosystem is now aligned and incentivized to say, I want to take a piece of Nvidia’s pie. And these companies have untold resources. To put a finer point on that, let’s look at PyTorch for a minute. Now that all the developers or lots of developers are using PyTorch, it does enable PyTorch to aggregate customers, which gives them the opportunity to disintermediate. You’ve got to write a lot of new stuff underneath and ship a lot of hardware. The cloud service providers have taken some steps here. It was originally developed by Meta. And while it’s open source, it’s still hard for all these companies to invest in it if it’s really owned and controlled by Meta. So now, PyTorch has been moved out into a foundation that a lot of companies are contributing to. Again, it is an absolute false equivalence to PyTorch versus Nvidia. But in real Ben Thompson aggregation theory parlance, if you aggregate the customers, you have the opportunity then to take more margin, to disintermediate, to direct where that attention is going. PyTorch has that opportunity that feels like the vector that a lot of these CSPs will try and compete on and say, look, if you’re building for PyTorch, it runs really well on our thing, too.…

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