And finally… accelerated profits
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Fuelled by the AI boom, Nvidia is experiencing a staggering estimated profit of 1,000% on the sale of each H100 GPU, with a street-price between $25,000 and $30,000 (around £19,600 to £23,500).
This is against an estimated chip cost of $3,320 (around £2,600), as revealed by Barron’s Tae Kim and sourced from financial consultancy, Raymond James.
While manufacturing costs don’t account for Nvidia’s extensive R&D expenditure, there’s no denying the company’s dominance in the AI acceleration market. So much so, Nvidia’s AI products are reportedly sold out until 2024, promising a bright future with the AI accelerator market potentially reaching $150 billion (around £118bn) by 2027.
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