Friday, December 27, 2024

GPU

There is a old adage in business that says if you want to get something done give it to a busy person. This has never been more obvious than in the case of Elon Musk. Back 6 years ago super computers were primarily used for medical research and predicting weather. Musk realized that super computers would lead the way for AI and began plans in 2019 to build one. He was buying GPU (graphics processing unit) equipment from Nvidia and knew that the demand would exceed the supply so he decided to build his own GPU. He often said that the best supplier is no supplier but had to use products from Nvidia. He understood that the demand is exceeding supply and the price would rise. He built a large units in Texas and Tennesee that purchased most of the GPU that Nvidia produced causing that company to increase in value by 2,000 percent in just the last five years. His next move was to start a company called Cortex which was partly owned by Tesla to produce his own GPU. This will cost more than buying from Nvidia short term but long term it is a good investment. Years ago company CEO's had long term plans but that disappeared in the 70's but Musk still thinks that way. Just like the major social media companies are starting to produce their owe electric power they must now look for ways to make their own GPU's and Musk is ahead in this game.

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