Gavin Baker

So you cool those GPUs, and the biggest problem with GPUs, one of the biggest, is they melt. You cool it with air. Blackwell weighs 3,000 pounds. So three times as much the rack, you know, it's eight feet tall, maybe five feet deep or four feet deep, 3,000 pounds. And it consumes 120 kilowatts.

So you cool those GPUs, and the biggest problem with GPUs, one of the biggest, is they melt. You cool it with air. Blackwell weighs 3,000 pounds. So three times as much the rack, you know, it's eight feet tall, maybe five feet deep or four feet deep, 3,000 pounds. And it consumes 120 kilowatts.

So twice as much power and roughly kind of the same footprint, three times as much weight and it's liquid cooled. So this is like an iPhone upgrade cycle. You know, it was like, It's still a pain that we went from, you know, lightning to USB-C. You know, I'll grab a cord and it'll be lightning instead of USB-C.

So twice as much power and roughly kind of the same footprint, three times as much weight and it's liquid cooled. So this is like an iPhone upgrade cycle. You know, it was like, It's still a pain that we went from, you know, lightning to USB-C. You know, I'll grab a cord and it'll be lightning instead of USB-C.

This is like an iPhone upgrade cycle where to get the new iPhone, not only do you have to change your connectors, you have to put in a new generator, you have to put in a new boiler and a whole house humidification system, you know, to kind of make it work. So it's a monumental product transition and I think that is a lot of why the receivables went up.

This is like an iPhone upgrade cycle where to get the new iPhone, not only do you have to change your connectors, you have to put in a new generator, you have to put in a new boiler and a whole house humidification system, you know, to kind of make it work. So it's a monumental product transition and I think that is a lot of why the receivables went up.

They were recognizing Blackwell revenue while it was still kind of getting into customers' hands. If that trend continues past the July quarter, then I would say, hey, that's reason for concern, but this is a very understandable time for that to happen from my perspective.

They were recognizing Blackwell revenue while it was still kind of getting into customers' hands. If that trend continues past the July quarter, then I would say, hey, that's reason for concern, but this is a very understandable time for that to happen from my perspective.

I mean, the accounting gets very complicated with these systems. But yes, I mean, they have delivered it and they recognize the revenue. But maybe the customer is saying, hey, we're not going to pay you until X, you know, until we get them plugged in and working. I mean, who knows what it is?

I mean, the accounting gets very complicated with these systems. But yes, I mean, they have delivered it and they recognize the revenue. But maybe the customer is saying, hey, we're not going to pay you until X, you know, until we get them plugged in and working. I mean, who knows what it is?

Yeah, but it makes total sense to have accounts receivable. It's just that here the accounts receivable have gone up more than sales. And that's just a function of the complexity of this product transition.

Yeah, but it makes total sense to have accounts receivable. It's just that here the accounts receivable have gone up more than sales. And that's just a function of the complexity of this product transition.

Absolutely, and sending NVIDIA GPUs to people who are adopting NVIDIA's reference architecture, which they believe is the best architecture for those GPUs, whereas each hyperscaler has their own slight tweaks to that server.

Absolutely, and sending NVIDIA GPUs to people who are adopting NVIDIA's reference architecture, which they believe is the best architecture for those GPUs, whereas each hyperscaler has their own slight tweaks to that server.

That hyperscaler does it so it looks more like their other servers, but maybe it doesn't run quite as well as the standard NVIDIA reference architecture with all of their chips, not just the NVIDIA GPUs. But the Intel Insight analogy is interesting. I had not thought of that. Thank you, Jamal.

That hyperscaler does it so it looks more like their other servers, but maybe it doesn't run quite as well as the standard NVIDIA reference architecture with all of their chips, not just the NVIDIA GPUs. But the Intel Insight analogy is interesting. I had not thought of that. Thank you, Jamal.

So we're definitely not overbuilt yet. Since DeepSeek came out, what has happened since DeepSeek R1 came out is China is buying every GPU they can. One of the largest Chinese server manufacturers warned last night that there's about to be a shortage of GPUs in China. The price of memory DRAM goes up every day. So we're not overbuilt today.

So we're definitely not overbuilt yet. Since DeepSeek came out, what has happened since DeepSeek R1 came out is China is buying every GPU they can. One of the largest Chinese server manufacturers warned last night that there's about to be a shortage of GPUs in China. The price of memory DRAM goes up every day. So we're not overbuilt today.

Point number one, and OpenAI yesterday said that they are gating their new image generation service because they don't have enough GPUs. So we're not overbuilt yet. Blackwell is going to be a very successful product cycle. There is a little bit of a prisoner's dilemma where

Point number one, and OpenAI yesterday said that they are gating their new image generation service because they don't have enough GPUs. So we're not overbuilt yet. Blackwell is going to be a very successful product cycle. There is a little bit of a prisoner's dilemma where