Huang claims NVIDIA reduced computing costs 100,000x in ten years versus Moore's Law's 100x.
“we drove the marginal cost of computing down by 100000x over the course of ten years. Moore's law would have been about 100x. And we did it it in several ways.”
Huang states the bill of material for an AI factory totals approximately $50 billion.
“the inventory bill of material of the supercomputer comes out. This AI factory comes out, adds up to about $50,000,000,000 bill of material.”
Nvidia reset market expectations on gross margins after absorbing cost increases rather than continuing to defer the issue.
“This quarter we decided that we would rip the Band-Aid off, reset expectations about our gross margins, and just explain to people that in fact, we have now absorbed the cost increases,”