At a recent dinner held at Nobu Palo Alto, two influential tech titans, Elon Musk and Oracle’s Larry Ellison, reportedly made an impassioned plea to Nvidia’s CEO Jensen Huang for more GPUs (graphics processing units). The duo expressed their eagerness to secure additional supplies, humorously insisting, “Please take our money,” in a bid to bolster their respective ventures.
During a recent analyst meeting, Ellison shared the anecdote, highlighting the intense demand for Nvidia’s advanced processors amidst the rapid growth of artificial intelligence. This dinner not only reflects the pressure on leading tech firms to acquire vital components for their operations but illustrates the competitive landscape of AI technology, where being first to market with capable systems is crucial.
Ellison humorously recounted, “Please take our money. By the way, I got dinner. No, no, take more of it. We need you to take more of our money, please,” capturing the urgency and camaraderie among industry leaders navigating the AI boom.
The collaboration between Nvidia and Oracle has proven fruitful as Oracle’s revenue from its AI-driven initiatives saw a 7% increase, reaching $13.3 billion in just the first quarter of fiscal 2025. This trend underscores the vital role that cutting-edge GPUs play in powering AI applications. On a similar note, Tesla continues to rely on Nvidia’s processing power for its self-driving technology, making the acquisition of these processors critical for both company’s ongoing success.
Ellison emphasized the significance of being the first to construct cutting-edge neural networks, saying, “It’s a big deal.” This aligns with broader industry sentiments, as the demand for high-performance memory chips is expected to remain constrained through 2024, primarily driven by the soaring need for AI technologies.
In light of the increasing constraints in the supply of high-performance chips, market leaders such as SK Hynix and Micron Technology are facing significant stocking challenges, with projections suggesting that their inventories for 2025 are becoming alarmingly limited. This supply shortage has been exacerbated by geopolitical factors, including strict U.S. sanctions on advanced chip technologies supplied to China, which adds another layer of complexity to the high-tech supply chain.
Musk’s previous remarks praising Nvidia’s commanding market capitalization—an impressive $2.55 trillion—reflect the broader industry’s acknowledgment of Nvidia’s dominance, positioning it as the third most valuable public company globally. Musk’s strategy has also shifted to redirect Nvidia chips initially designated for Tesla toward his other ventures, including X and xAI. This move illustrates a broader operational focus on aligning technological resources across multiple business interests.
As the tech industry continues to evolve rapidly, the relationship dynamics among these leading figures remain critical to shaping the future of AI technology. The urgency expressed during that dinner signals not just a friendly exchange but a strategic maneuver as tech giants position themselves in the race for AI supremacy, striving to harness the power of cutting-edge technology to maintain their competitive edge.
This high-stakes interaction serves as a testament to the intertwined futures of these corporate giants and the ongoing light-speed evolution within the tech landscape, highlighting the necessity of collaboration and foresight. This scenario not only marks a poignant moment in tech history but also showcases the relentless pursuit of innovation that propels these industry leaders forward, underscoring the critical role of strategic partnerships in navigating today’s complex technological terrain.