[treffer]

NVIDIAs margin is someone's money. I wouldn't say they don't understand it. I would say they need a good enough competition to get the margin down.

E.g. FB saying they want to buy 350k H100. That's just a whopping $14B price tag. With a >85% profit margin. While a fab is $20B.

Trillion? Sounds like anchoring to me. Nvidia has a market cap of $1.7T. You could literally buy NVIDIA for that. I read that as "a billion won't cut it, we need quite a few billions".

But it's not unreasonable that those hyperscalers throw in a few billion each.

Usually it's horrible business not to be best (see Intel/AMD). Because the margins are at the top. In this case though they want a whole range of products to go down in margin. Even a slightly worse chip might be worth it if it comes at a significant cost reduction. Especially if the optimal design is known!

In a sense the whole thing can fail at reaching the top or making lots of money and still succeed in bringing total cost down, potentially by 50% or more.