Nvidia and Salesforce double down on AI startup Cohere in $450M round

[mrweasel]

Best description ever of what AI companies produce: "software systems that are trained on large amounts of data and can generate text".

No further explanation of what Cohere might provide to it's customer of value, just the ability to generate text.

[eamsen]

Yet, here we are, generating text. Some of which has value.

[DebtDeflation]

If we're going to waste electricity, I'd rather we waste it on AI than on mining Bitcoin. At least AI is providing some utility to its consumers and there's reason to believe it will provide even more in the future.

[itkovian_]

I think there's a reasonable argument that cohere might not capture the value and it might all go to the big players. But I can't understand how anyone still has the view llms themselves are not valuable.

[behnamoh]

Man I hate Nvidia and their monopolistic behavior. Making 800% margins on H100s is just absolute greed imo. They make good GPUs but they don't deserve to be an almost $3T company...

[rodiger]

"Your margin is my opportunity"

A ton of companies are dumping R&D into designing their own chips with seeming success. Nvidia will be in tough company quite soon, but for now demand greatly outstrips supply.

[talldayo]

I hate the industry for never learning how to get along and make a real CUDA competitor. Nvidia can make 1600% margins for all I care, this is exactly the sort of future we deserve when nobody can agree on a common GPU API.

You want competition, you want vertical integration? Here it is. Compete.

[philomath_mn]

If they are selling something that everyone wants and there aren't enough GPUs to around, how else do you suggest allocating those GPUs to the public except by increasing the price?

[Ductapemaster]

So say they mark them down to some reasonable level — they are still supply constrained and now the line just gets longer. It doesn’t really fix anything.

Pricing allows them to prioritize their customers, which seems reasonable.

[talldatethrow]

Tech hardware companies are the only people where I'm not annoyed at their prices.

Want a fence built for you? $3000 for 2 days work with 96 pieces of wood.

Want a basic android phone with 4 gb of memory, 128 gb of storage, a camera, speakers, touch screen, wifi, cell tower connection, GPS, battery, charger and cable? $60 on sale at Walmart for a Moto G Power Stylus edition. (My current phone and that's what I paid a few months ago)

[IncreasePosts]

If they sold them at 30% margins or whatever you think is reasonable, then scalpers would just pocket the 770%. Not sure how that is better for the ultimate purchasers or Nvidia.

[hi-v-rocknroll]

Monetize while the iron is hot.

It's because Microsoft/OpenAI and Meta are throwing multiple $10B's at NVIDIA. This is unsustainable and NVIDIA's stock will contract over 3-6 years unless Microsoft and Meta can translate hype into essential, profitable products which isn't a sure thing™.

[asadm]

AMD had a chance, they dropped the ball and still won't fix their ways (on devexp, drivers, etc). I think Nvidia deserves the success.

[dcgudeman]

Here is the definition of monopoly:

"the exclusive possession or control of the supply of or trade in a commodity or service."

There are other huge players: AMD and Intel.

Additionally Google and Amazon are producing their own AI hardware.

Now can you explain to me how Nvidia has a monopoly?

[tuttyboy]

There are so many LLMs that they’re starting to feel cheap.

[hi-v-rocknroll]

The shark will be completely jumped once McDonald's offers a Happy Meal prize that's a virtual pet powered by an LLM.

[metadat]

Also Oracle is in on this one: https://www.oracle.com/customers/cohere/

[anothername12]

What's the best way to make money of all this LLM stuff before it implodes?