Comment by signatoremo
4 hours ago
I haven't seen this discussed here:
So far, the accelerator is showing cost savings of roughly 50% compared with typical AI graphics processing units, Broadcom Chief Executive Officer Hock Tan said in an interview. - [0]
50% cost saving. The picture changes so quickly, there are still a lot of low hanging fruits, that I find any discussion about whether a vendor has moats, or if they can recoup investment, is moot and futile.
[0] - https://www.bloomberg.com/news/articles/2026-06-24/openai-an...
If GPUs have 75% margin then 50% cheaper is no surprise.
Operational costs far outweight hardware cost.
Do they? Genuinely ansking.
1 reply →
"Typical" is doing a lot of work there. That could mean much older chips than Nvidia is currently selling.