Nvidia’s 3X Revenue While OpenAI Losses its Magic

Nvidia’s 3X Revenue While OpenAI Losses its Magic

Hey Everyone,

If you are going to summarize what has occured 2023 in A.I., Nvidia’s performance really is the center of where the action is.

If in recent days OpenAI has lost a bit of our respect and trustworthiness, Nvidia has gained even more credibility. It's Nvidia, not OpenAI I'd argue that is 2023's most important AI company. The recent Earnings prove it.


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Just to illustrate the surprising year we’ve had in Generative A.I. euphoria, I think the best reflection of this is actually Nvidia’s recent Q3 Earnings.

While OpenAI has 1 Billion or so revenue, it’s very far from being profitable, while Nvidia is now part of the magnificent seven, entering a unique pantheon of companies with unprecedented power in the future of technology.

While recently Sam Altman has been a huge distraction, Anthropic’s Claude 2.1 release and Nvidia’s earnings shows you just how misplaced that hype is. OpenAI or ChatGPT are from the center of the gold-rush of LLMs in reality.

Nvidia?reported Tuesday November 21st, 2023 blowout third-quarter (Q3) results and offered stronger Q4 guidance as AI-led chip demand bolstered growth in its high-margin data center business.?

Nvidia’s stock before today’s open is up 249% for 2023 so far, NVDA 0.00%↑ which is unprecedented for a company worth over $1 Trillion dollars. Tech execs have voiced concern that the development of artificial intelligence is concentrated in the hands of too few companies and Nvidia’s sudden unworldly success is a case in point.

Jensen Huang, CEO of Nvidia’s personal wealth is a case in point. Worth roughly $14 billion at the start of 2023, Huang is now worth nearly $44 billion thanks to his ownership of many Nvidia shares, and he is now the world's 27th richest person.

Let’s break down some of Nvidia’s earnings numbers to get a better idea of what has transpired for this company in 2023.

Nvidia’s market cap is 1.234 T. (Trillion) as of late November, 2023, and the stock is nearly $500. Nobody could have predicted that at the beginning of the year or even last year. Nvidia is by far the most important company right now in A.I.


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In what was to me even a surprise, Nvidia’s results significantly surpassed analysts’ projections for revenue and income in the fiscal fourth quarter.

  • Record revenue of $18.12 billion, up 34% from Q2, up 206% from year ago
  • Record Data Center revenue of $14.51 billion, up 41% from Q2, up 279% from year ago

Nvidia is like a different company in 2023 on the back of demand for its A.I. chips and what is attributes as Data Center revenue.

According to Reuters, some estimates put NVIDIA's AI market share at as much as 80%. Meanwhile if OpenAI has officially been swallowed up by Microsoft interventions, you have to wonder at these AI startups moving forwards. They aren't even compliant with their own founding ideologies and rules, so how are companies supposed to trust them?

AI is giving Big Tech ‘inordinate’ power

Demand for the company's GPU chips surged as artificial intelligence fever swept the world and BigTech’s enthusiasm over LLMs and Generative A.I. products in the Cloud have also separated the magnificent seven from the rest of the world and in particular on the stock market.

Mobile, the Cloud and LLMs appear to be like bigger and bigger moats for BigTech companies.

What will Nvidia do with its new found power?

Even in 2023 Nvidia is backing Generative A.I. startups like never before. Their investments of AI startups in 2023 dwarf other BigTech companies.

To read the entire deep dive article go here.

Nvidia Earnings in a Nutshell

The AI giant saw its revenue rise by 206% year-over-year and 34% from the prior quarter to more than $18 billion, beating estimates of $16 billion in the company's third quarter of its 2024 fiscal year. Its net income rose 49% from the prior quarter and 1,259% year-over-year to $9.2 billion.


Veliko Atanasov (CA)SA

Accounting | Finance | Automation | Data Science

10 个月

Nvidia can consider doing what OpenAI was planning to - produce both the GPUs as well as the related services that use them. Maybe the next huge LLM might end up coming from Nvidia itself

Joseph Hewitt

Technology Governance Firefighter

10 个月

Do you think the moats being dug around Big Tech will start to kindle discussions around what a monopoly looks like in a new AI world? Maybe the discussion on Google Search being a monopoly due to business practices will look like small beans compared to what eventually will be the black box of LLMs and Generative AI (even with transparency/explainability requirements).

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