OpenAI x NVIDIA just announced a $100B partnership.
Recently I came across this announcement: https://openai.com/index/openai-nvidia-systems-partnership/
This reminds me of 2012 when AlexNet combined GPUs with deep learning to win ImageNet. That marriage of hardware and algorithms kicked off the entire AI revolution we're living through today.
They're co-designing everything together – NVIDIA is literally building chips for OpenAI's models, while OpenAI shapes their models around NVIDIA's architecture.
This has worked before:
• Google's TPUs + Transformers → 30X performance boost
• Tesla's Dojo for self-driving → $500B value add (per Morgan Stanley)
• Meta's custom chips → 44% cost reduction
The pattern? When hardware and software grow up together, you get 10-200X improvements.
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Here's where my head's at...
AI leadership might be shifting from who writes the best algorithms to who controls the entire stack.
Every company now faces a tough choice:
• Build custom infrastructure (massive cost, massive advantage)
• Keep renting generic compute (easier, but you're just another customer)
• Find the right partners for co-design (probably the smart middle ground)
I'll be honest – I used to believe clever algorithms could beat raw compute. :/
But watching this unfold? The game feels fundamentally different now.
Companies that treat infrastructure as part of their core AI strategy will pull ahead. Everyone else might just end up buying from them.
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Maybe I'm being too pessimistic. Maybe there's still room for David to beat Goliath with brilliant code.
But when Goliath has $100B and is literally redesigning chips at the atomic level... well, you tell me who you'd bet on.
Curious about your perspective:
Is the scrappy AI startup era ending? Can algorithmic breakthroughs still compete with infinite compute?
Really want to hear from folks building in AI right now. How are you approaching the infrastructure dilemma?
Source: https://openai.com/index/openai-nvidia-systems-partnership/
#AI #NVIDIA #OPENAI #TECHNEWS #INFRASTRCTURE