Recently, NVIDIA CEOHuang Jen-Hsun put forward a set of highly controversial views at a press conference that could even be described as "embracing shortages." The current hardware shortage has not only failed to hinder NVIDIA's development, but has become its best weapon to consolidate its market dominance.Huang Renxun made a shocking statement during the meeting: "I love limitations because in a world full of limitations you have no choice but to pick the best (NVIDIA)."
In a period of extremely tight hardware supply, no company is willing to take the risk of poor hardware performance or compatibility issues. Therefore, the safest investment target on the market has naturally become the wisest choice. This risk aversion caused by supply shortages makes NVIDIA's high-end chips the only answer for companies when building AI infrastructure.
In addition to GPUs, Huida's advantage in the hardware shortage lies in its ability to provide complete infrastructure. Huang Renxun said bluntly: "From the moment you ensure production capacity, we can build an entire factory for you. We are the only company in the world that can enter your company and assist you in building an entire AI factory."
Huang Renxun also mentioned the DRAM memory factory as an example: You know,If you build a factory, a building, like a DRAM factory, and I walk in and say, "You know what? Go build this DRAM factory, because I'm going to take care of everything you make."
This sentence may sound particularly harsh to the ears of the general public, who are currently facing soaring prices due to hardware shortages.
At the end of talking about hardware shortages, Huang ended with a very domineering declaration, demonstrating NVIDIA's position as the strongest negotiator in the supply chain.
He said,I own all the memory, I own all the wafers, I own all the CoWoS (advanced packaging). He further emphasized the thoroughness of NVIDIA's monopoly on hardware resources. I master all packages, I master all systems, I master all connectors, and I master all cables. From copper to multilayer ceramic capacitors (MLCC), everything has been ensured.
Judging from NVIDIA’s revenue structure,Huang Renxun’s mentality is not surprising. Currently, the gaming business accounts for only 8% to 9% of its total revenue, while the data center business has already become the largest source of revenue contribution.
As for whether computer enthusiasts will go bankrupt buying the next set of memory, that's not NVIDIA's concern at all.