Elon Musk and Larry Ellison Plead for More Nvidia GPUs Over Sushi

Elon Musk and Larry Ellison Plead for More Nvidia GPUs Over Sushi

Updated on: October 12, 2024 3:56 pm GMT

The tech industry has taken a delicious turn as two of its biggest moguls turned to sushi in their quest for more graphics processing units (GPUs). At a recent meeting, Oracle co-founder Larry Ellison detailed how he and Tesla CEO Elon Musk “begged” Nvidia CEO Jensen Huang for additional GPUs over dinner at Nobu Palo Alto. This lighthearted plea highlights a serious competitive quest for AI resources in today’s tech landscape.

A Culinary Plea for GPUs

At the analysts’ meeting, Ellison shared a candid account of the dinner, showcasing the urgent need for GPUs among tech giants. Ellison humorously described the evening, saying, “I would describe the dinner as Oracle—me and Elon begging Jensen for GPUs. Please take our money.” Their persistence illustrates the critical demand for these components, essential for driving advancements in artificial intelligence (AI) and machine learning.

The appetite for GPUs is particularly rabid in this fast-evolving sector, making such dinners not only social events but also strategic business maneuvers. Ellison confirmed that their efforts yielded positive results, stating, “It went ok. I mean, it worked.”

Nvidia’s Dominance in AI Technology

Nvidia controls a staggering 80% of the AI chip market, making it a pivotal player for companies developing AI technologies. Ellison emphasized the importance of being competitive in this environment, likening the tech race to a Formula One driving competition. “You’ve got three people on the podium, but there’s really kind of one winner,” he remarked, identifying the need for superior performance in AI development.

Nvidia GPUs are essential for powering the supercomputers that train neural networks, which is crucial for advancements in both AI and self-driving technology—areas where Tesla is heavily invested.

Oracle’s Strategic Investments

Oracle has not been idle in the race for cutting-edge technology. The company has been making significant investments in GPU technology, particularly for AI applications. Recent financial results indicate healthy growth for the firm:

  • Revenue increased by 7% to $13.3 billion year-over-year.
  • Profits reached $2.9 billion.
  • Operational or under-construction cloud datacenters: 162 worldwide.

The upcoming largest datacenter, with a capacity of 800 megawatts, will house extensive Nvidia GPU clusters, aimed at training large-scale AI models.

The High Stakes of AI Competition

Ellison’s comments reflect the growing urgency among tech executives to accumulate GPUs and develop state-of-the-art datacenters. “Does anyone know what it costs to build a frontier model over the next three years?” Ellison posed. “One hundred billion. That’s going to get you in the game.” He noted that such investments are necessary to remain competitive in a field where success could depend on who develops the most advanced AI first.

Ellison also touched on the limited number of companies—and even countries—that can afford to enter this race, underlining the exclusivity and high stakes involved in AI development.

Nvidia GPUs

Photo: Nvidia’s dominance in the AI chip market is underlined by the fervent requests from tech moguls like Ellison and Musk.

The Broader Implications

Ellison and Musk’s dinner plea shines a spotlight on the intricate relationship between hardware availability and innovation in AI. As companies race to develop the most sophisticated AI systems, the struggle for GPU access becomes emblematic of larger industry trends.

The ongoing competition underscores the need for significant investments in technology and infrastructure. As companies like Oracle and Tesla gear up to build powerful AI applications, experts and investors alike are keenly watching how these developments unfold.

The Future of AI and GPU Demand

As the demand for GPUs escalates, industry observers expect continued pressure on Nvidia and other chip producers to meet the needs of various tech giants. The impact of these developments could reshape not just AI but many aspects of our economy and daily lives.

Ellison’s remarks highlight an emerging reality in the tech industry where collaboration, competition, and even dining experiences converge in the pursuit of innovation. This mounting excitement over AI capabilities suggests that the race for technological supremacy is only just beginning.

Conclusion

The fun dinner at Nobu was not just a night out for two big bosses; it showed how much people want important technology in AI. When Larry Ellison and Elon Musk ask for more GPUs, they highlight the tough competition in the tech world today. The future of AI, which needs advanced machines to grow, is going to be as exciting and complicated as getting those machines.

Freelance technology writer and reporter with a strong expertise in crafting news stories, reviews, tutorials, and articles about the tech industry. With a deep understanding of emerging trends and technologies, Lance delivers clear, insightful content that helps readers stay informed and make informed decisions. His work is characterized by a keen attention to detail and a commitment to making complex tech topics accessible to a wide audience.

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