No further explanation of what Cohere might provide to it's customer of value, just the ability to generate text.
Doesn't sound like a waste, does it?
I'd go further and argue mining Bitcoin isn't either, but I digress.
The compute is "wasted" to pick winners and secure the system, but it's not actually wasted, it can be made more efficient by actually using the compute to do something, but even if that was not the case, it pays back its value 100x.
A ton of companies are dumping R&D into designing their own chips with seeming success. Nvidia will be in tough company quite soon, but for now demand greatly outstrips supply.
You want competition, you want vertical integration? Here it is. Compete.
there are google TPUs. Do they provide better pefrormance/dollar, or google also charges high margin, or Nvidia is doing some unique optimizations?
Pricing allows them to prioritize their customers, which seems reasonable.
Want a fence built for you? $3000 for 2 days work with 96 pieces of wood.
Want a basic android phone with 4 gb of memory, 128 gb of storage, a camera, speakers, touch screen, wifi, cell tower connection, GPS, battery, charger and cable? $60 on sale at Walmart for a Moto G Power Stylus edition. (My current phone and that's what I paid a few months ago)
It's because Microsoft/OpenAI and Meta are throwing multiple $10B's at NVIDIA. This is unsustainable and NVIDIA's stock will contract over 3-6 years unless Microsoft and Meta can translate hype into essential, profitable products which isn't a sure thing™.
"the exclusive possession or control of the supply of or trade in a commodity or service."
There are other huge players: AMD and Intel.
Additionally Google and Amazon are producing their own AI hardware.
Now can you explain to me how Nvidia has a monopoly?
One of ways of wielding monopoly power is no longer being a price taker and being able to set prices at in practice to whatever you want.
