From: allin
NVIDIA has expanded its focus beyond its traditional cloud GPU business, making significant announcements at CES aimed at consumer-facing AI and robotics [01:19:19]. This strategic shift is seen as an effort to broaden their market reach and potentially justify their valuation in the long run [01:21:20].
Project Digits: Personal AI Computers
One notable announcement is Project Digits, a $3,000 personal AI computer designed for researchers [01:20:30]. This device is described as a powerful personal tool, akin to an Arduino, capable of running Large Language Models (LLMs) locally [01:19:34].
The purpose of such a low-end PC for advanced AI inference is a subject of discussion [01:25:20]. The prevailing theory is that it serves as a test bench for various AI applications, particularly those requiring “edge computing” where data processing happens locally rather than in the cloud [01:27:18]. This is beneficial for applications like:
- Machine Vision models [01:27:31]
- Graph Neural Networks used for weather forecasting [01:27:37]
- Genome Language Models for biotech [01:27:40]
- Real-time robotic responses in industrial settings like warehouses [01:27:51]
Local processing avoids latency issues, dropped connections, or server failures that can occur with cloud-based models, ensuring quick, reliable responses [01:29:05]. The plug-and-play nature of this NVIDIA computer allows it to be strapped onto devices like humanoid robots, cars, tractors, or lawnmowers [01:29:56]. It is suggested that its compute power for $3,000 outperforms many Mac models [01:30:21].
Expansion into Physical AI
NVIDIA is actively pursuing the domain of physical AI, including robotics and self-driving technologies [01:20:43]. Predictions suggest that 2024 will be “the year of Robotics” [01:20:50]. NVIDIA plans to offer driver-assistant chips and tools for building simulated worlds [01:20:54]. This move is seen as giving autonomy partners a significant advantage by integrating technology directly into chips and their software stack [01:21:08].
While NVIDIA is building a “test bench for robotics,” there’s a strong belief that Waymo and Tesla are likely to dominate the self-driving market, leading to consolidation in the traditional auto industry [01:24:49]. NVIDIA also implicitly acknowledged Tesla’s position by declaring it one of the most valuable companies for self-driving due to its extensive data [01:22:20].
Market Impact and Future Outlook
This push into consumer AI and robotics is seen as a way for NVIDIA to sustain its growth and sustainability beyond its current cloud GPU revenue, which currently constitutes the majority of its earnings [01:21:33]. The broader AI technology and market trends are expected to lead to a “Cambrian explosion” of creativity and development, making the landscape for seed-stage investing more challenging due to the rapid execution and proliferation of similar ideas [01:30:59].