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AI leader through a difficult day: "Challenge the Nvidia Alliance" makes a new move, and the Middle East business is bearish

AI leader through a difficult day: "Challenge the Nvidia Alliance" makes a new move, and the Middle East business is bearish

Finance Associated Press

2024-05-31 03:51Published on the official account of Cailianpress, a subsidiary of Shanghai Poster Industry Group

Finance Associated Press, May 31 (edited by Shi Zhengcheng) At the end of the U.S. stock market on Thursday, AI leader Nvidia saw a wave of rapid diving, falling below and expanding to 3%. Just as the tech giants are working together to develop a new trick to challenge Nvidia's dominance, there is bad news in the direction of the Middle East at the policy level.

AI leader through a difficult day: "Challenge the Nvidia Alliance" makes a new move, and the Middle East business is bearish

(Nvidia daily chart, source: TradingView)

On the other side, the aftermath of Nvidia's announcement of the 10-Q table yesterday is still rippling; And with Huang's entry into the "billionaire club," his way of working began to circulate as a new "philosophy of success."

The Challenger Alliance is assembled!

Although various tech giants have launched their own AI chips in the past few years, they have never been so "arrogant" as on Thursday.

In an announcement released Thursday, Microsoft, Google, Meta, Intel, AMD, Cisco, Broadcom, and Hewlett Packard Enterprise announced that they have reached a consensus to collectively promote a communication standard for large-scale AI systems in data centers called Ultra Accelerator Link (UALink).

AI leader through a difficult day: "Challenge the Nvidia Alliance" makes a new move, and the Middle East business is bearish

(来源:businesswire)

The purpose of this specification is to set the specifications for the connection of different AI accelerators, of course, to facilitate the mixing of different AI chips in the same data center. According to the announcement, the relevant specifications will be made available to participating companies in the third quarter of this year.

Obviously, everyone's first reaction when they saw this announcement was - Nvidia was not among them!

Considering that Nvidia occupies nearly 8% of the entire AI chip market, there is no doubt that it will stick to NVLink, which it claims to be the "world's fastest high-performance computing protocol", so it makes sense that these tech giants "don't play with NVIDIA".

Of course, it's hard to say what kind of climate this alliance will become, after all, the "leading big brothers" Microsoft, Google and Meta are now all big customers waiting in line for Nvidia to provide graphics cards. At the same time, given that all the "financiers" are now big customers of NVIDIA, it is unlikely that an agreement to exclude NVIDIA's graphics cards will be made.

Nvidia released its 10-Q later on Wednesday, which is a more complete quarterly report. The company disclosed that in the first quarterly reporting period, there were "two indirect customers each accounting for 10% or more of the company's total revenue". UBS analyst Timothy Arcuri bluntly said that Microsoft is one of these two big customers. Timothy said that according to previous estimates, in Nvidia's last fiscal year, Microsoft alone probably contributed nearly 19% of revenue.

The Middle East business is bearish

There were also media reports on Thursday that in recent days, the U.S. Department of Commerce has "slowed down" the issuance of export licenses for computing chips in Middle Eastern countries to technology giants such as Nvidia and AMD. A person familiar with the matter said that some applications to sell chips to customers in the United Arab Emirates, Saudi Arabia and Qatar have been delayed or not responded to in the past few weeks.

It is reported that earlier this month, Thea Kendler, assistant secretary of the U.S. Department of Commerce for export management, visited Saudi Arabia, the United Arab Emirates, Qatar and Kuwait to discuss semiconductor export licenses. In October last year, the U.S. Department of Commerce included most of the Middle East in the scope of chip export restrictions, and companies such as Nvidia, AMD, and Intel need to obtain special permits to export cutting-edge chips to the region.

Nvidia directors plan to sell 435,000 shares

Along with Form 10-Q, there is also a Form 144, which is a document that directors, supervisors, senior executives, or shareholders holding a large number of shares of a listed company are required to disclose in advance before reducing their shareholdings.

The disclosure of the intention to reduce holdings this time is Nvidia director and well-known Silicon Valley investor Mark Stevens. He has served as a director of NVIDIA since 2008. The announcement disclosed that he plans to sell 435,000 shares of Nvidia stock, corresponding to a market value of nearly $500 million.

AI leader through a difficult day: "Challenge the Nvidia Alliance" makes a new move, and the Middle East business is bearish

(Source: SEC)

What is even more enviable to investors is that he has held these stocks since he bought them in 2006. According to the current issuance, the cost of Stevens holding these Nvidia shares should be about $3 per share, so this is another "300x riches myth".

Wong's Mail Guidelines

With the latest round of Nvidia stock price rise, Huang's worth also exceeded the $100 billion mark for the first time this week, becoming the 15th richest person in the world.

Like many of the new super-rich, talk about Huang's work style has made headlines.

According to a former Nvidia employee quoted by Business Insider as saying that Huang has a so-called "TL; DR" (too long to see) approach is extremely concise and efficient.

According to a former Nvidia executive, sending Huang an extraordinarily long email would get him in trouble. At Nvidia, emails are double-spaced, with one sentence per line, and a message may add up to no more than five or six lines. He further added, "The logic is to make it clear what has to be said, and if Huang or someone else needs more information, he'll come to you and talk to you, not send another email." ”

Of course, this kind of corporate culture depends entirely on the temper of the founder. For example, Bezos, the richest man in the world today and who is talking about a sweet "sunset red love", is known for his penchant for elaborate and detailed internal letters. He has publicly stated that PowerPoint presentations are not allowed in internal Amazon meetings, and that employees need to prepare a "six-page narrative structure" memo before the meeting, which they read silently together at the beginning of the meeting.

(Finance Associated Press, Shi Zhengcheng)

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  • AI leader through a difficult day: "Challenge the Nvidia Alliance" makes a new move, and the Middle East business is bearish
  • AI leader through a difficult day: "Challenge the Nvidia Alliance" makes a new move, and the Middle East business is bearish
  • AI leader through a difficult day: "Challenge the Nvidia Alliance" makes a new move, and the Middle East business is bearish

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