00:00Under this arrangement, the technology flows both ways, but it's basically about wireless tech for use at the edge.
00:07You know, it was a huge surprise just going on the reaction of Nokia shares, but it's NVIDIA moving into yet another new segment.
00:15What's your reaction to it, please?
00:18So it is. I think we have seen the transition towards a virtualized radio access network be a little bit slower than what we would like.
00:30With this partnership, Nokia is basically promising to rewrite its stack, update its hardware stack, update its software stack, optimize on NVIDIA software libraries and on NVIDIA hardware.
00:44So I think it's very significant.
00:47Why does NVIDIA need to make a $1 billion equity investment in Nokia and own 3% of it in order to do this?
00:55I think that what we've seen in the past, whenever you ask a company to rewrite their software stack, it is costly.
01:04In fact, Amazon did something similar, a little bit more under the radar when they started shipping their ARM CPU.
01:12What they did is they would enable software developers through funding to optimize their code for ARM, to migrate their code from x86 to ARM.
01:21In essence, what NVIDIA is asking Nokia to do is to optimize their code for whatever is already virtualized from x86 to ARM, but also to move from a physical RAM appliances to a virtual RAM.
01:35What's extraordinary, Vlad, here is if you take the bigger picture, this is NVIDIA time and time again basically making investments for people to ensure that NVIDIA technology is integral across every industry group.
01:51If you just go through Nokia when you think of telecoms, but they did deals across Lucid, across Uber, we think about robo-taxes, we're thinking not just telecommunications, we think about the future of software when we think about what they've been doing in Palantir, Vlad.
02:03Is there any other wide open space for NVIDIA to get into?
02:07I think you're absolutely right.
02:09This is NVIDIA utilizing its cash stockpile in a very smart way by entering another market.
02:14The mobile infrastructure market itself is only $35 billion.
02:18So I think Jensen understands that this is not going to be the holy grail.
02:22This is one of the many investments.
02:24I think that you see something very similar that I think will become more prominent in storage.
02:30I think that NVIDIA has a lot more room to grow in networking.
02:35I think you'll see it growing a lot more in consumer PC, right, because that's one of the things it wants to do with Intel.
02:41I think you'll end up seeing it probably in their robot revolution in the future.
02:46They also said they want to be in cars.
02:48So I think that we can see that Jensen's strategy is just maximize your presence and specifically get your programming environment, the CUDA environment, to be ubiquitous.
03:03Just tell us how ubiquitous it already is, Vlad, because I think so many of us make the quick assumption that it's all about hardware and semiconductors.
03:10But this is a full tech stack.
03:11And the fact that they're so ingrained in terms of software as well, it's almost become the de facto king across every other big tech company.
03:20Yes.
03:21In fact, I myself underestimated it a little bit because, you know, one of the things we know is a NVIDIA advantage was the NVLink.
03:30And we are starting to see more challengers in the networking domain.
03:34But the reality is the networking is not as sticky as software.
03:38Software is extremely sticky.
03:40The thing is they have made such a rich suite of tools.
03:45In essence, a programming language and so many tools that make it easier for different skill sets of programmers to develop.
03:52I think that's what's so impressive about the NVIDIA software portfolio.
03:56And the fact that you can use it for many optimized functions.
04:00I think that's what's very interesting.
04:02In essence, Jensen is asking his army of developers, I want you to help this industry and this industry and this industry and this industry.
04:10That's, I think, what's the most impressive.
04:13Vlad, the biggest disclosure that Jensen Wang made was the $500 billion figure of revenues that they say will come from just Blackwell Rubin, specifically over five fiscal quarters, excluding China.
04:28When that number went up on the screen on stage, a lot of people reacted.
04:33How far ahead is that figure than the model that you had for the data center business that NVIDIA is doing?
04:42It's, I knew you were going to ask me this.
04:45So I did, of course, that was what we were watching yesterday.
04:48It's about $100 billion high.
04:49So this creates about $100 billion opportunity.
04:52I think it's very significant, particularly if we end up seeing the Blackwell deal with China, because that means that we then have more than $100 billion of upside.
05:03I think when I think about the $100 billion of upside that Jensen is showing us, I think of it as a backlog, an order pipeline.
05:12There are a few concerns that I have along the way in terms of that materializing in my forecast.
05:17So I am going to start exploring, baking it in.
05:20But some of the things that I am concerned about are physical infrastructure availability and supply chain readiness and power availability in the data center.
05:30I would say that these are the three things that I am most concerned about.
05:33Is all of the components that we need there in the supply chain?
05:37One, specifically, is the physical infrastructure ready for data centers?
05:42Because there's very long lead times on some physical infrastructure.
05:45And then finally, it's the power.
05:47Vlad, can I jump in very briefly here?
05:49Because when you think about the supply chain, you think about the other components that are needed within data centers.
05:53SK Hynix says its full 2026 chip slate is sold out.
05:58Exactly.
05:59So the thing is, with SK Hynix, they are in the Blackwell, but the Rubin is done with Samsung.
06:05So I think that there's some smart hedging of bets there from a memory perspective.
06:10But there's so many other aspects.
06:11There's packaging material.
06:13And again, NVIDIA is being very careful with how to balance the packaging material supply chain.
06:17But NVIDIA has only been able to control the semiconductor part of the supply chain.
06:23I'm worried about some fundamental materials, like precious metals used in the building of the servers and the electrical equipment.
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