NVIDIA MGX Is Real; The Other Headlines Written By A Hallucinating AI?
Welcome to a strange new world, at least according to the headlines popping up everywhere that NVIDIA is the first chipmaker to be valued at a trillion dollars. Ignore the fact that the sharp spike in the GPU companies stock price is driven by the current AI craze and parse the rest. NVIDIA does not have any fabs, their chips are currently made by TSMC and have been fabbed at several other companies over the years so to call NVIDIA a chip maker is a bizarre statement. As to NVIDIA’s trillion dollar worth, that is only accurate if you are talking specifically about market cap, something with no bearing on reality at all.
What does reflect reality is that NVIDIA made $7.19 billion in total revenue this quarter, while Intel made $11.7 billion and that reflects a horrific quarter for Intel and a better than expected quarter for NVIDIA. There is no way for NVIDIA to scale up it’s production to come anywhere close to what the market cap suggests, they don’t have the people and more importantly TSMC doesn’t have the space on it’s production lines to make that many chips for NVIDA.
The new NVIDIA MGX open sever spec on the other hand is very real and could be very popular in the near future. The current designs for server chassis were designed many years ago and were built for chips both larger and less power hungry than today’s silicon. The design also couldn’t take into account HPC cards, seeing as how they didn’t exist. NVIDIA has stepped up with a solution, a modular design for racked servers which is designed specifically to handle large amounts of HPC hardware. The modular design will make it far less expensive to build, while offering a wide variety of designs to accommodate the specific hardware that will need to be cooled and powered.
Considering that ASRock Rack, ASUS, GIGABYTE, Pegatron, QCT and Supermicro have all signed on with NVIDIA MGX and will be producing chassis for customers later this year. It will be nice to see some new designs mounted on racks in the server room, the old designs are getting very dated.