“So, you know, that that pricing has literally four x on the memory cost. And and now today, if you look at it, the cost of memory is 30 to 50% of the GPU cost.”
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”
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 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.”