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Nvidia is dominating earnings season and hasn’t even released results yet.
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Other large-cap tech giants have mentioned on earnings calls that they are increasing investments in AI infrastructure.
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Nvidia offers the popular H100 GPU chip that many companies use and has been specifically name-checked in some cases.
Nvidia is dominating the first quarter earnings season and hasn’t even released its results yet.
The company has received several nods, directly and indirectly, from large-cap technology companies that it counts among its largest clients.
Words like “AI Infrastructure,” “generative AI,” and “infrastructure investments” have regularly appeared during earnings calls. Microsoft, Alphabet, AmazonAnd Metaplatformsand all this indicates that more money will be allocated to Nvidia for its incredibly popular H100 GPU chip.
Nvidia’s H100 GPU, which costs over $40,000, enables AI technologies that make ChatGPT, Anthropic, and other generative AI platforms possible.
The company is preparing to launch its next-generation AI chip, named Blackwell, later this year.
Elon Musk denounces Nvidia’s AI chips
Perhaps the biggest vote of confidence for Nvidia this earnings season came from You’re here CEO Elon Musk, who said during his company’s earnings conference call, the electric vehicle maker will more than double its H100 GPU chips by the end of the year.
“We have installed and fielded, meaning they are actually working, 35,000 H100 computers or GPUs,” Musk said last month. “Around 35,000 H100s are active, and we expect that number to probably be around 85,000 by the end of this year.”
Musk said the H100s help Tesla further improve its fully autonomous driving software.
AI spending by tech mega-caps soars
Meta Platforms said it was increasing its planned 2024 capital spending to a range of $35 billion to $40 billion, up from a prior range of $30 billion to $37 billion. According to Meta, this increase is mainly due to the development of its “investments in infrastructure to support our AI roadmap”.
In January, Meta announced it would purchase 350,000 H100 GPUs from Nvidia in 2024, but a recent update from the company’s head of AI, Yann LeCun, suggests the company has purchased even more H100 chips in recent months.
Speaking at the Forging the Future of Business with AI Summit last month, LeCun and host John Werner said Meta bought 500,000 more GPUs from Nvidia, bringing its total to 1 million with a retail value of around $30 billion.
Microsoft has similar ambitions and has said so hopes to amass war chest of 1.8 million GPUs by the end of 2024, according to an internal document.
Alphabet said its first-quarter capital spending was $12 billion, about double the prior year, driven “largely by investment in our technical infrastructure, with the largest component for servers, followed by data centers.
Microsoft said it expects $50 billion in capital…
