SK Hynix Predicts NVIDIA Will Dominiate AI Chip Business For At Least Three Years
Chey compared the AI landscape to the gold rush period in the United States, in which pickaxe providers and sellers did quite well as miners headed west in search of fortune. could no longer have a viable business once all the gold had been depleted. To an extent, we're seeing this now with AI. An example that comes to our mind is Apple’s partnership with OpenAI, which will only see either company making any money if Apple’s users decide it’s worth it to pay for the AI features.
"When there was no more gold, the sellers became unable to sell pickaxes," Chey during a talk with Nave CEO Choi Soo-yeon and Chong Song, head of KAIST Kim Jaechul Graduate School of AI, during the 47th KCCI Jeju Forum, according to The Korea Times. "Without making money, the AI boom could vanish, just as the gold rush disappeared."
Even so, SK hynix anticipates that NVIDIA will lead the AI industry for at least the next three years. The insinuation appears to be that while AI's gold rush may fade over time, NVIDIA has put itself int a position to thrive, both now and into the future.
Also notable is a shift beginning to happen in moving more AI tasks to a user’s device, with even Intel and AMD now integrating AI solutions into their CPUs. It cuts down on the awkward lag often seen in cloud based AI, and can enable better privacy. Looked at more broadly, though, it potentially means more competition for NVIDIA.
NVIDIA probably isn’t in any danger of seeing the AI money train stop anytime soon, and SK hynix certainly believes the chip designer is in a great spot to capitalize for several years to come amid the AI gold rush. And of course NVIDIA's gaming GPUs are still raking in billions of dollars every year, so there's that.
Update 7/23/24:
The Korea Times has updated its article to reflect comments and clarification from SK hynix. Accordingly, we have updated our article as well to more accurately reflect SK hynix's messaging regarding NVIDIA, namely that it expects NVIDIA to maintain a dominant position in AI chips for three years or more.
The Korea Times has updated its article to reflect comments and clarification from SK hynix. Accordingly, we have updated our article as well to more accurately reflect SK hynix's messaging regarding NVIDIA, namely that it expects NVIDIA to maintain a dominant position in AI chips for three years or more.
