Jensen Huang has resigned!!
This has National Security ramifications as Trump was himself in support of Huang’s wish to be able to export the highest capacity chips to China. Apparently the State Department had suspected Alice Huang for some time. It’s not clear whether these concerns were passed on to Trump, who speaks to Huang frequently. Huang is sufficiently close to Trump that he is a donor to the White House ballroom
Huang is one of the key architects behind the entirety of AI cross funding with the Magnificent Seven… Nvidia’s current business model is dependent upon this cross-funding. Nvidia is dependent upon Jensen Huang. Arguably, Nvidia is Jensen Huang.
A very powerful point from a capital and Investment perspective is something that is seldom touched upon – even in the FT, where I would expect to see it: that is the life cycle of the data center.
I don’t mean the building, I mean the chips. Apparently these chips are physically capable of lasting between seven and eight years, (as once the data center is switched on it effectively cannot be switched off). 7 to 8 years for a given chip that costs thousands of dollars each, and there are thousands of them in each data centre. The bulk of spend in the data centers are the chips, not the buildings and energy infrastructure-which will of course outlast the chips.
Given the Economics’ of technological advance and performance improvement versus cost, few of the financial analysts speak about the sustainability of these margins. Nvidia in the last several days has lost 8% of its value (timestamp: as of one day before resignation). Jensen Huang cannot be easily replaced, yet competitors are catching up quickly on chip capability. This has ramifications for the model of data centres themselves.
As for the future of Nvidia, that could take a crystal ball, which is filled with cloudy liquid, at a time were the crystal is being held offshore due to import restrictions…🤦🏻
#JensenHuang #Nvidia #Resignation #AI
