Patel notes NVIDIA takes 75% margin on hardware comprising most of data center TCO, driving hyperscalers to develop own accelerators.
“So, you mentioned how you're depreciating this asset that's five, six years and this is the majority of the 75% of the TCO data center. And Jensen is taking a 75% margin on that.”
Patel says Google will make five to seven million TPU chips while Amazon targets three to five million.
“They're going to make something like five to 7,000,000 chips, right? Of their own TPUs. You look at Amazon, they're trying to make three to 5,000,000.”