Nvidia's Expanded Collaboration Reinforces Dominance in AI Compute

2 months ago

"Now, the next topic I want to jump into is uh Nvidia and Microsoft announced an increasement or expanded their collaboration. So Nvidia is expanding its collaboration with Microsoft including through the adoption of next generation Nvidia Spectrum X Ethernet switches for the new Microsoft fairwater AI superactories powered by the Nvidia Blackwell platform. So here is just more of an expansion of partnership and this is what you want to see right Nvidia continues to be a dominant player in the AI compute world and the AI chip market in the data center market. So there wasn't anything here that in my opinion should drive the stock price up today, but it's just that long-term thesis still intact that Nvidia is just developing chips and not just chips, right? Networking solutions, software solutions, AI solutions at such a rapid pace that it makes it a sticky business. So that's pretty exciting there."

The speaker highlights Nvidia's expanded collaboration with Microsoft as an endorsement of its dominant position in the AI compute space. Despite a modest price dip in the short term, the long-term thesis remains intact due to Nvidia's rapid development of integrated solutions beyond just chips.

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