Gavin Baker

Well, so first thing he did, there was Alfred was from Sequoia.

Well, so first thing he did, there was Alfred was from Sequoia.

And then they had a nice sell-side guy whose name is escaping me at the moment. But it is technically true. I was the only public equity investor on the buy side that Jensen asked. I've known Jensen for 25 years. He's kind of the same guy he ever was, just maybe slightly calmer.

And then they had a nice sell-side guy whose name is escaping me at the moment. But it is technically true. I was the only public equity investor on the buy side that Jensen asked. I've known Jensen for 25 years. He's kind of the same guy he ever was, just maybe slightly calmer.

Yeah, so I guess maybe take them in reverse order. I really don't think, like if NVIDIA had not put any money into CoreWeave, not put any money into kind of other of these neoclouds, I don't think it would have impacted their revenues at all. At all.

Yeah, so I guess maybe take them in reverse order. I really don't think, like if NVIDIA had not put any money into CoreWeave, not put any money into kind of other of these neoclouds, I don't think it would have impacted their revenues at all. At all.

Yeah, more to Meta, more to Amazon, more to Microsoft. So the reason they did it is even three years ago, it was a very stable three-player oligopoly from the cloud computing players in Amazon, Google, and Microsoft. And if you're NVIDIA, that's not great to have just three big customers.

Yeah, more to Meta, more to Amazon, more to Microsoft. So the reason they did it is even three years ago, it was a very stable three-player oligopoly from the cloud computing players in Amazon, Google, and Microsoft. And if you're NVIDIA, that's not great to have just three big customers.

Those big clouds, particularly in 2023, when there was such a rush to get GPUs, they each kind of want to do their own kind of custom version of an NVIDIA server. And NVIDIA, by giving kind of like a standard reference design, which someone like CoreWeave bought to CoreWeave, you got GPUs in the market a lot faster.

Those big clouds, particularly in 2023, when there was such a rush to get GPUs, they each kind of want to do their own kind of custom version of an NVIDIA server. And NVIDIA, by giving kind of like a standard reference design, which someone like CoreWeave bought to CoreWeave, you got GPUs in the market a lot faster.

And when you use NVIDIA's reference design, it's generally smoother and easier to stand them up. And so the big three kind of cloud computing hyperscalers, their incremental share of revenue went down and that was nothing but good for Nvidia because they now have kind of a more fragmented base of buyers who have less power over them.

And when you use NVIDIA's reference design, it's generally smoother and easier to stand them up. And so the big three kind of cloud computing hyperscalers, their incremental share of revenue went down and that was nothing but good for Nvidia because they now have kind of a more fragmented base of buyers who have less power over them.

So look, it's never good. But if you think NVIDIA has gone through the biggest product transition in history in terms of Hopper, you know, this is a business doing tens of billions of dollars at scale. There's never been a product transition like this in the history of semiconductors going from Hopper to Blackwell.

So look, it's never good. But if you think NVIDIA has gone through the biggest product transition in history in terms of Hopper, you know, this is a business doing tens of billions of dollars at scale. There's never been a product transition like this in the history of semiconductors going from Hopper to Blackwell.

you know kind of the 2022 generation gpu to this one the only precedent for this on planet earth is the iphone and there's something called the osborne effect which is you know when apple comes out with a new iphone for the three months before nobody buys the new iphone

you know kind of the 2022 generation gpu to this one the only precedent for this on planet earth is the iphone and there's something called the osborne effect which is you know when apple comes out with a new iphone for the three months before nobody buys the new iphone

And I think the only reason NVIDIA was able to grow through this product transition is because of reasoning models like DeepSeq, which are just so compute hungry. And this product transition does come back to the day's receivables.

And I think the only reason NVIDIA was able to grow through this product transition is because of reasoning models like DeepSeq, which are just so compute hungry. And this product transition does come back to the day's receivables.

Yeah, it's never good when accounts receivables go up. But if this is the most understandable time for it to happen... In a product refresh cycle, you're saying. Yeah, and because... A hopper server, you know, it's a rack, it's whatever it is, seven feet high, it weighs a thousand pounds, it consumes 60 kilowatts, which is 60 American homes, and it's air-cooled.

Yeah, it's never good when accounts receivables go up. But if this is the most understandable time for it to happen... In a product refresh cycle, you're saying. Yeah, and because... A hopper server, you know, it's a rack, it's whatever it is, seven feet high, it weighs a thousand pounds, it consumes 60 kilowatts, which is 60 American homes, and it's air-cooled.