{"text":[[{"start":10.44,"text":"When a rival claims that they need $7tn to keep up, you know you’re in a good position. "},{"start":15.768999999999998,"text":"Nvidia’s command over chips tailored for artificial intelligence led OpenAI’s Sam Altman to set a wild goal earlier this month. "},{"start":22.724,"text":"Demand for AI chips continues to outstrip supply. "},{"start":25.917,"text":"This is reflected in Nvidia’s forecast that sales in the current quarter will reach a record $24bn — three times higher than last year. "}],[{"start":34.57,"text":"The quarterly earnings that Nvidia released on Wednesday were framed by some commentators as a referendum on AI. "},{"start":40.899,"text":"This is not the case. "},{"start":42.454,"text":"End users are still getting to grips with AI tools. "},{"start":45.497,"text":"The extent of their impact is up for debate. "}],[{"start":48.38,"text":"Instead, Nvidia’s earnings show the strength of spending on infrastructure by companies and countries determined not to be left behind while AI is still in development. "},{"start":56.959,"text":"If you listened to other tech earnings you would already know this. "},{"start":60.05200000000001,"text":"Amazon, Alphabet and Microsoft, all Nvidia customers, said capex would rise. "},{"start":65.869,"text":"Meta’s Mark Zuckerberg went further. "},{"start":68.024,"text":"In January, he declared that his company would have 350,000 of Nvidia’s H100 AI chips by the end of the year. "},{"start":74.929,"text":"Nvidia does not specify their price but it is estimated that they are up to $40,000 apiece. "},{"start":80.34700000000001,"text":"Even if Meta paid half that, it would mean $7bn. "},{"start":84.089,"text":"This sort of demand makes up for the fact that US government intervention has curbed Nvidia’s sales to China. "}],[{"start":90.55000000000001,"text":"Because Nvidia designs chips instead of making them, gross margins are high at 76 per cent. "},{"start":95.60000000000001,"text":"While infrastructure spending at other companies is booming, Nvidia’s own spending increase is modest next to revenue growth. "},{"start":102.40400000000001,"text":"Hence cash flow from operating activities for the fourth quarter of $11.5bn, up from just over $2bn a year ago. "},{"start":110.197,"text":"Nvidia may be thinking about ways to put that to work via mergers and acquisitions. "}],[{"start":115.78000000000002,"text":"Companies want more autonomy in AI chips. "},{"start":118.68400000000001,"text":"But changing the status quo will be expensive. "},{"start":121.48900000000002,"text":"SoftBank prices its rival AI chip plan at $100bn. "},{"start":125.81900000000002,"text":"Companies like Alphabet are developing their own chips but still rely on Nvidia graphics processors, or GPUs. "},{"start":132.299,"text":"Well-funded AI hardware start-ups are struggling to make headway, says tech research company Omdia. "},{"start":137.942,"text":"It points out that M&A activity in the sector is relatively low. "}],[{"start":142.64000000000001,"text":"While competitors try to catch up, Nvidia is working on its next next-generation AI chip — the B100. "},{"start":149.23200000000003,"text":"It is possible that, like a new iPhone, customers will hold off purchase plans until the new chip launches. "},{"start":155.22400000000002,"text":"Then again, high demand for existing chips suggest they will continue to take whatever they can get. "}],[{"start":160.42000000000002,"text":""}]],"url":"https://creatives.ftacademy.cn/album/143296-1708575931.mp3"}