Questions whether NVIDIA needs the Meta deal given already robust demand, and raises concerns about circularity of revenue and supply chain reliance.
speaker1
Mandeep Singh
The deal is Meta's way of locking in NVIDIA supply, with the significant new element being Meta's planned use of NVIDIA CPUs alongside GPUs, moving away from traditional Intel/AMD x86 architecture.
Mandeep Singh
NVIDIA's latest Blackwell chips offer 30x more token output than prior Hopper architecture for the same power, creating a throughput advantage that ties directly to model quality.
Mandeep Singh
AMD gets negatively impacted by this deal as NVIDIA now supplies CPUs, displacing previous AMD or Intel CPU suppliers to Meta's data centers.
Mandeep Singh
Intel has local foundry capacity that could be used more with government push, but currently NVIDIA's ecosystem optimization creates circular partnerships similar to Google-Anthropic and Amazon-Anthropic.