Databricks CEO predicts a major drop in AI server chip prices

sk3tch said:
With AI hotter than the sun right now I don't see how chips go down in price. There are people predicting NVDA at $1,000 soon.
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It primarily stems from Blackwell and changes in memory structure. The current limiting factor is Memory in the GPU, that’s not totally changing but updates to CUDA now allow for system Ram to be used as a spill over. Pair that with performance increases of nearly 250% and in 2-3 years what we can very reasonably see $10,000 workstations going toe to toe with systems that today cost well upwards of $100,000
Of course in that same we can expect to see $150,000 machines 2-3 years out running circles over those same $150,000 machines of today.
So the big spenders will still spend the same to keep at the top of the pack, but the reasonable barrier of entry will be lowered significantly.
 
sk3tch said:
With AI hotter than the sun right now I don't see how chips go down in price. There are people predicting NVDA at $1,000 soon.
Click to expand...
Margin going down because of competition is almost inevitable, they have software like margin right now in a hardware space.

$50,000 should buy you a lot more compute with less margin for the sellers eventually, we never know, but capitalism is creating so much pressure to make that happen right now.

We could be still far away for GPU to be like internet bandwidth in term of commodity too it all seem to be inevitable in the next 300 years but if you do not put a date on such prediction, you are not predicting much.
 
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