Patel explains hyperscalers are developing custom accelerators to reduce equipment costs since Jensen takes 75% margins.
“So what all the hyperscalers are trying to do is develop their own accelerator so that they can reduce this overwhelming cost for equipment to increase their margins.”
Patel says Blackwell cost is up 50-70% over Hopper but performance exceeds 2x, making it an obvious choice.
“while cost is only up, know, call it 50% or 60% or 70% versus Hopper, the performance is well north of 2x, right?”
Patel states GB 200 servers from Nvidia cost well over $3 million, preventing time-slicing users on individual servers.
“These servers cost hundreds of thousands of dollars if nothing new. Know GB 200 from Nvidia cost well over $3,000,000 so the cost of these things is huge”