at this point , they dont buy ram to expand their data centers , they are just buying them to take it away from normal users so they become reliant on data centers . they want end user devices to just be a screen , means of input and internet
Amazon is racing to secure AI hardware earlier than before, even as data center power shortages leave some GPU systems waiting in warehouses.
Under a new Early Rack Receipt process, AWS expected to receive roughly $5 billion in Nvidia’s GB300 server racks at US facilities before final deployment, according to August internal emails reviewed by Business Insider. The company projected roughly $3 billion more in GB300 racks each month “for the foreseeable future,” one of the emails said.
Some AWS sites had room for more racks but not enough available power to turn them on, people familiar with the effort said, leaving finished equipment to be staged at intermediary warehouses until the facilities were ready.
At least one AWS team did not have “a clear forecasted path” for getting the incoming racks into data centers at the time, according to one of the emails
Its because Nvidia is strong-arming all the companies to buy gpus even if they arent immediately needed. If they don’t, they go to Jensen Jail i.e they don’t allow you procure from them in the future.
Like the Ram manufacturers, if your product is the critical path in the industry, with a sizeable moat, you are the king.
I legitimately think they’re buying so much to stop their competitors from buying more. These companies now have more GPUs than they can fit in their datacenters, but they’re still buying more. These are assets that rapidly depreciate.
A big part of this is Nvidia twisting their arms. “Buy this many billion dollars of GPU’s or we cut you out of future GPU purchases. This way we can both look like hyperscalers.”.
Intel used to do that same thing to OEM’s. Force them to buy junk like Pentium D chips so that they could have priority access to Core 2 Duo/Quads of the time.
at this point , they dont buy ram to expand their data centers , they are just buying them to take it away from normal users so they become reliant on data centers . they want end user devices to just be a screen , means of input and internet
This is exactly what they’re doing.
# Amazon is buying billions in Nvidia AI systems it can’t yet turn on
I’m surprised they can keep track of that much unused inventory. Those warehouses are now gold mines.
Its because Nvidia is strong-arming all the companies to buy gpus even if they arent immediately needed. If they don’t, they go to Jensen Jail i.e they don’t allow you procure from them in the future.
Like the Ram manufacturers, if your product is the critical path in the industry, with a sizeable moat, you are the king.
I legitimately think they’re buying so much to stop their competitors from buying more. These companies now have more GPUs than they can fit in their datacenters, but they’re still buying more. These are assets that rapidly depreciate.
A big part of this is Nvidia twisting their arms. “Buy this many billion dollars of GPU’s or we cut you out of future GPU purchases. This way we can both look like hyperscalers.”.
Intel used to do that same thing to OEM’s. Force them to buy junk like Pentium D chips so that they could have priority access to Core 2 Duo/Quads of the time.
Maybe nVidia isn’t even making the gpus, nobody will know right? Just empty boxes worth billions…
This was the idea of Sun Microsystems ‘Sun Ray’ desktop in the late 90’s.
A thin terminal that ran almost entirely on the network. Maybe this is why Ellison ended up buying them all those years ago.
https://en.wikipedia.org/wiki/Sun_Ray