Nvidia could invest in AI cloud operator Lambda at $1B valuation

https://siliconangle.com/2023/07/18/report-nvidia-invest-ai-cloud-operator-lambda-1b-valuation/

by mcint • 3 years ago

9 7 3 years ago

siliconangle.com

galkk• 3 years ago

What sense is in it for NVIDIA? They can build cloud on their own, they prove it with GeForce now.

Why middle man?

jtsiskin• 3 years ago

Lambda uses the money from NVIDIA to buy NVIDIA cards = NVIDIA gets equity for 70% off

https://nvidianews.nvidia.com/news/nvidia-announces-financia...

AlotOfReading2• 3 years ago

Lots of potential reasons Nvidia doesn't want to be selling a public cloud. For one, they want to sell shovels to the gold rush, not pan for themselves.

Two, they'd be directly competing with their major datacenter customers. They already do this in other markets, but there's a balancing act with how much you can push the big cloud players and how much they'll spend trying to replace you. Nvidia is already struggling to keep them in line (controlling customers is in their DNA) and every new market segment they enter makes antitrust regulators wary.

Having an investment also doesn't tie them to the fate of any particular company. If it goes bankrupt tomorrow, Nvidia doesn't have to sit there and fire the employees/unwind the company.

Lots of others too, like not wanting to get involved with future cloud legislation.

andrewstuart• 3 years ago

Nvidia has a monopoly.

It is unconcerned about normal business practice.

If AWS/Google/Azure don't like Nvidia running their own AI cloud, they can choose to not buy Nvidia AI hardware.

Microsoft was unconcerned about Windows stepping on Apple's toes.

arpowers• 3 years ago

I could understand an acquisition to quickly launch an Nvidia cloud services platform.

This would also resolve a branding problem for Lambda, people always confusing it w AWS’ similarly named product..

mcint• 3 years ago

Nvidia does have their gaming cloud. They also have excellent researchers, and engineers improving the performance of published research, including consulting work.

I suppose for the self-serve cloud market, that's set to blow up. For all those people who want to train their own models, LoRA adapt, or explore possibilities.

Jensen has talked about creating a cloud including their customers selling back compute time on DGX nodes.

Nvidia could invest in AI cloud operator Lambda at $1B valuation

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