[HN Gopher] Nvidia and Salesforce double down on AI startup Cohe...
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       Nvidia and Salesforce double down on AI startup Cohere in $450M
       round
        
       Author : iam_a_user
       Score  : 38 points
       Date   : 2024-06-04 16:04 UTC (6 hours ago)
        
 (HTM) web link (finance.yahoo.com)
 (TXT) w3m dump (finance.yahoo.com)
        
       | behnamoh wrote:
       | Man I hate Nvidia and their monopolistic behavior. Making 800%
       | margins on H100s is just absolute greed imo. They make good GPUs
       | but they don't deserve to be an almost $3T company...
        
         | talldayo wrote:
         | I hate the industry for never learning how to get along and
         | make a real CUDA competitor. Nvidia can make 1600% margins for
         | all I care, this is exactly the sort of future we deserve when
         | nobody can agree on a common GPU API.
         | 
         | You want competition, you want vertical integration? Here it
         | is. Compete.
        
           | riku_iki wrote:
           | > I hate the industry for never learning how to get along and
           | make a real CUDA competitor.
           | 
           | there are google TPUs. Do they provide better
           | pefrormance/dollar, or google also charges high margin, or
           | Nvidia is doing some unique optimizations?
        
             | betaby wrote:
             | Our company can buy NVIDIA gear. Google TPU, well, is
             | google's property I have no control over. This site is
             | overrepresented by clod folks. In reality ~90% of the
             | workloads are NOT cloud based. Unless one can buy
             | Google/Amazon/Meta T/N/AI/PUs that unique optimizations are
             | irrelevant for the most of the workloads.
        
               | debbiedowner wrote:
               | Why 90%? Why don't you go on the cloud for training at
               | least if it's not healthcare data?
               | 
               | Is it because you don't need to buy many gpus to do your
               | workload?
        
               | betaby wrote:
               | Reasons why people don't go on the cloud were outlined
               | many times, i.e. https://world.hey.com/dhh/we-have-left-
               | the-cloud-251760fb was discussed on HN many times.
               | 
               | I could have written almost the same reasons for GPU
               | workloads.
        
             | thebruce87m wrote:
             | Who would go with google for anything? No support and the
             | product cancelled when they get distracted with something
             | else.
        
             | talldayo wrote:
             | The TPU is basically an ASIC as far as I know; it competes
             | against CUDA in a very small subset of it's featureset.
             | CUDA is essentially a composition layer on top of multiple
             | GPU features that optimizes them for general-purpose
             | compute. In essence, nothing is stopping Apple or Google
             | from making an Open Source CUDA replacement and undermining
             | the demand for specialized GPGPU compute. The problem is
             | that CUDA is massive, and nobody wants to re-implement it
             | (especially not for free).
             | 
             | So now Nvidia is in the privileged position of having both
             | highly-flexible GPGPU compute hardware, as well as a
             | highly-advanced software layer to use it with. TPUs and
             | NPUs are neat, but fundamentally they are neither of these
             | things; they have an extremely limited processing pipeline
             | exposed by a high-level library, and that's usually it.
             | CUDA is comparatively flexible, to the point that it
             | doesn't even rely on AI to sell it's product.
             | 
             | To me, hating on Nvidia feels like being mad that a well-
             | bred horse with great odds beat out the jockey you were
             | betting on. Why should we hate them, for their "monopoly"
             | on features that Apple and Khronos gave up developing?
             | Because they're blocking-out their competitors by... not
             | having working MacOS drivers per Apple's request? This is
             | the causal and obvious outcome of letting businesses
             | commoditize specialized compute. This is what the industry
             | wanted, and it's rich watching the customers protest like
             | they were fooled into thinking everything was fine.
        
               | riku_iki wrote:
               | > The TPU is basically an ASIC as far as I know; it
               | competes against CUDA in a very small subset of it's
               | featureset. CUDA is essentially a composition layer on
               | top of multiple GPU features that optimizes them for
               | general-purpose compute.
               | 
               | my understanding is that compilers can compile some
               | straighforward JAX, TF, Pytorch programs to both Cuda and
               | TPU, so they in direct competition in current hot topics
               | (LLM, deep learning).
        
               | talldayo wrote:
               | Right; but you can't cross-compile _everything_. This is
               | really common in AI libraries, especially multi-target
               | projects like ONNX: https://onnx.ai/
               | 
               | The math probably adds up in Google's favor with the
               | TPUs, even if they end up being less efficient and slower
               | per-unit than Nvidia hardware. They don't need to pay for
               | the margins, and they can run them 24/7 for their
               | intended purpose. The previous-generation TPUs can't be
               | reused or resold for other purposes though, and if/when
               | AI blows over as a trend you probably can't easily start
               | mining crypto or doing HPC calculations like an Nvidia
               | cluster would.
        
         | philomath_mn wrote:
         | If they are selling something that everyone wants and there
         | aren't enough GPUs to around, how else do you suggest
         | allocating those GPUs to the public except by increasing the
         | price?
        
         | rodiger wrote:
         | "Your margin is my opportunity"
         | 
         | A ton of companies are dumping R&D into designing their own
         | chips with seeming success. Nvidia will be in tough company
         | quite soon, but for now demand greatly outstrips supply.
        
         | asadm wrote:
         | AMD had a chance, they dropped the ball and still won't fix
         | their ways (on devexp, drivers, etc). I think Nvidia deserves
         | the success.
        
         | Ductapemaster wrote:
         | So say they mark them down to some reasonable level -- they are
         | still supply constrained and now the line just gets longer. It
         | doesn't really fix anything.
         | 
         | Pricing allows them to prioritize their customers, which seems
         | reasonable.
        
           | pie420 wrote:
           | if the line gets long enough, it allows other companies to
           | compete with Nvidia and creates a healthier, more competitive
           | market, in the same way AMD has made intel a more honest,
           | fairer, less price-gouging company. Competition is the entire
           | thesis of american capitalism
        
             | talldayo wrote:
             | > Competition is the entire thesis of american capitalism
             | 
             | Then why aren't people competing with Nvidia? Why is OpenCL
             | on life support and unsupported on major operating systems?
             | Why are we doing this song-and-dance routine refusing to
             | adopt certain GPU APIs but embracing closed ones instead?
             | 
             | I'd like to believe that a tipping point will be reached,
             | but if not now then when? People have talked about upending
             | Nvidia's GPGPU compute empire for years, but besides
             | application-specific replacements and proofs-of-concept, we
             | don't have a real CUDA-killer. Apple does not ship one,
             | Google does not ship one, Microsoft does not ship one and
             | AMD doesn't either.
             | 
             | So... when? If we continue along the current path, I
             | suspect Nvidia will continue to find markets where CUDA is
             | demanded and OEMS will continue to chase them down with
             | half-measure solutions. Unless OpenCL is revived or someone
             | commits to a proprietary CUDA-like platform, I suspect
             | we'll be spinning our wheels and digging ourselves deeper.
        
               | thorncorona wrote:
               | > Then why aren't people competing with Nvidia? Why is
               | OpenCL on life support and unsupported on major operating
               | systems? Why are we doing this song-and-dance routine
               | refusing to adopt certain GPU APIs but embracing closed
               | ones instead?
               | 
               | Because Nvidia invested 20 years into its API platform,
               | and this advantage is slowly getting realized.
        
               | talldayo wrote:
               | Well therein lies my confusion; why did their competitors
               | get 10 years into making a competing API, and then give
               | up?
               | 
               | If the reason that OpenCL died is because Apple decided
               | that they'd rather draw blood than work with the
               | community, then yeah, this is a well-deserved failure on
               | their part. Even _Nvidia_ was willing to contribute to
               | OpenCL; the only thing stopping us from living in a CUDA-
               | agnostic world is the pointless and childish aggression
               | between device manufacturers.
               | 
               | It feels less like we're slowly realizing things, and
               | more like the persistent failure of Nvidia's competitors
               | is forcing them back to the negotiations table. It's
               | pathetic that American businesses are this willing to
               | throw each other under the bus before they consider
               | working together for the common good.
        
               | ralph84 wrote:
               | Because Nvidia is run by a founder who has been playing
               | the long game for the entire history of the company. Its
               | competitors are run by non-founders who aren't interested
               | in the long game they're interested in next quarter's
               | earnings.
        
               | prng2021 wrote:
               | Nvidia's founder isn't a fortune teller. He didn't create
               | his company to become the world leader in running AI
               | workloads. CUDA has been around for a long time and it
               | didn't give them any significant advantage over AMD. If
               | generative AI hadn't exploded very recently, NVIDIA and
               | AMD would just be battling it out with their GPUs for
               | gaming as before.
        
         | dcgudeman wrote:
         | Here is the definition of monopoly:
         | 
         | "the exclusive possession or control of the supply of or trade
         | in a commodity or service."
         | 
         | There are other huge players: AMD and Intel.
         | 
         | Additionally Google and Amazon are producing their own AI
         | hardware.
         | 
         | Now can you explain to me how Nvidia has a monopoly?
        
           | Spivak wrote:
           | Because monopoly means "wields monopoly power and engages in
           | anticompetitive behavior that harms consumers." Having
           | competition or not, having large market share or not doesn't
           | matter one bit.
           | 
           | One of ways of wielding monopoly power is no longer being a
           | price taker and being able to set prices at in practice to
           | whatever you want.
        
             | dcgudeman wrote:
             | Your definition of monopoly contains a reference to
             | "monopoly", so I am still not sure what your definition of
             | monopoly is. It sounds like it is something like "big
             | company that charges a price you think is high". Why do you
             | think you know what the "right" price is. Isn't it a good
             | thing the company delivering the most value is capturing
             | the most profits? They will likely continue to deliver
             | breakthroughs with the profits they are generating. Why
             | would you want to kneecap a company generating so much
             | value?
        
         | IncreasePosts wrote:
         | If they sold them at 30% margins or whatever you think is
         | reasonable, then scalpers would just pocket the 770%. Not sure
         | how that is better for the ultimate purchasers or Nvidia.
        
         | talldatethrow wrote:
         | Tech hardware companies are the only people where I'm not
         | annoyed at their prices.
         | 
         | Want a fence built for you? $3000 for 2 days work with 96
         | pieces of wood.
         | 
         | Want a basic android phone with 4 gb of memory, 128 gb of
         | storage, a camera, speakers, touch screen, wifi, cell tower
         | connection, GPS, battery, charger and cable? $60 on sale at
         | Walmart for a Moto G Power Stylus edition. (My current phone
         | and that's what I paid a few months ago)
        
       | mrweasel wrote:
       | Best description ever of what AI companies produce: "software
       | systems that are trained on large amounts of data and can
       | generate text".
       | 
       | No further explanation of what Cohere might provide to it's
       | customer of value, just the ability to generate text.
        
         | eamsen wrote:
         | Yet, here we are, generating text. Some of which has value.
        
           | andrei_says_ wrote:
           | But often it's hard to know which.
        
         | DebtDeflation wrote:
         | If we're going to waste electricity, I'd rather we waste it on
         | AI than on mining Bitcoin. At least AI is providing some
         | utility to its consumers and there's reason to believe it will
         | provide even more in the future.
        
       | tuttyboy wrote:
       | There are so many LLMs that they're starting to feel cheap.
        
         | hi-v-rocknroll wrote:
         | The shark will be completely jumped once McDonald's offers a
         | Happy Meal prize that's a virtual pet powered by an LLM.
        
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