Nvidia Corp NVDA-backed AI infrastructure startup CoreWeave is making waves in the AI market as one of the main providers of Nvidia’s AI chips. The GPU cloud provider actually offers options from several different companies, but its CEO says no one wants anything other than Nvidia chips.
What To Know: Wednesday on CNBC’s “Squawk Box,” CoreWeave co-founder and CEO Mike Intrator highlighted “relentless” demand for AI chips. He noted that demand has been and looks likely to continue to be severely skewed toward Nvidia.
“The market that we are seeing — and we are very close to the true demand for this infrastructure — is relentless. It has been in a state of severe disequilibrium for the past two and a half years,” Intrator said.
“In our planning and the planning that we are being driven to do by our clients, there is quite a bit of runway still.”
The CoreWeave CEO told CNBC that customers are coming to him with orders, but instead of saying how much they want, they are telling the company they will take everything they can get by a certain date. Some companies are planning nine months out, others are planning a full year ahead and beyond, he added.
Customers are trying to get their hands on all of the AI chips they can get because they don’t have enough capacity to train their models and serve those models through inference, Intrator said. Interestingly enough, they aren’t looking for options outside of Nvidia.
“We buy all of the different types of silicon and look at them from a performance perspective, but at the end of the day, we are delivering what our clients want and our clients want Nvidia technology. They do not want the other stuff,” Intrator said.
“It’s hard to tell, for me, what other demand there is because I can’t get through my own demand, my Nvidia-based demand.”
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In Nvidia’s most recent quarter, the chipmaker smashed estimates on the top and bottom lines for the sixth consecutive time and guided for continued strong demand for generative AI training and inference chips.
“The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence,” Nvidia founder and CEO Jensen Huang said at the time.
“AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities.”
Nvidia shares are up approximately 138% year-to-date, driven by continued demand for its AI chips. While some have drawn comparisons to the dot-com bubble, others have argued that AI is going to continue to supercharge efficiency. Some have even suggested that Nvidia’s stock price appreciation is just getting started.
NVDA Price Action: Nvidia shares were down 6.59% at $118.15 at the time of publication, according to Benzinga Pro.
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Photo: courtesy of Nvidia.
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