00:00It's the tool by which a chip is designed but also validated. So before you send a chip through the fab to be manufactured, you test that actually the design is going to work.
00:09And it's really interesting because Synopsys is a supplier to Nvidia. They use that software platform. The stock is up 5 percent. Nvidia bought these shares at $414.79.
00:20It's now up near $440. Taking between 2% and 3% of the company, replicating a playbook that you and I have discussed with Nvidia a couple of times this year.
00:30They took a stake in Intel in what was an engineering partnership. They took a stake in Nokia, which was also an engineering partnership in the telecoms domain.
00:38So there is some questions about, well, what does Nvidia get out of this? Synopsys is used by basically anyone that has their own chip designs, right?
00:46And so there's an argument that this gives Nvidia a sales channel. Synopsys will say our software platform is so much better when it's run on Nvidia GPUs.
00:56So if you want to use our software to design your chips, you should also use it with Nvidia GPU to power that compute.
01:02It seems like Nvidia, it's almost like an investment business as well as a chip maker. They have stakes in so many other companies.
01:10Yeah. It's got to be a huge portfolio. Is this part of the strategy?
01:14I mean, we've had the opportunity to discuss this with Jensen Huang several times this year.
01:20Every time I've asked him what's the rationale behind taking 2% to 3% of a company, he basically will say, I thought it was going to be a good investment.
01:29And particularly in October when we were in DC and they made the Nokia investment, you know, that day Nokia's stock jumped 20% and he almost joked with me, well, I was pretty genius move, wasn't it? His words, not mine.
01:44But, you know, it's kind of separate from the circular financing debate in that, you know, they take equity positions where their bet is that the technology partnership moves the field forward in some way.
01:57And they get a return on the stock different to say lending money. That's disgusting in King's tech daily today.
02:03You know, the circular financing versus backing up loans debate for Jensen.
02:09It's a very simple calculus. Is this or is this not a good investment? And they've got some cash to spare right now.
02:14The debate or the story really of last week was Google TPUs and, you know, how efficiently they power Gemini and also Gemini versus ChatGPT.
02:27John Authors has a great column today wishing ChatGPT happy third birthday.
02:33How does this all seem to be shaking out? Because it seems that that SoftBank's CEO son was so sad that he almost cried when he had to sell his Nvidia stake, but he needed the money to invest in open AI.
02:50Like what if they're not the ultimate winner? Yeah, I followed this story from the beach last week because, as you know, I took a break.
02:56But it was kind of interesting to take a step back. The very simple argument for those that are still bullish on Nvidia and discount the threat of a Google TPU is that Nvidia is still supply constrained.
03:08They will sell every single GPU that TSMC can manufacture for them. And their margins are high. So there's no price pressure.
03:16There's no suggestion that Nvidia is having to discount to ward off some of that threat from TPU.
03:22And, you know, TPU is also not that new a thing. I think this is what's so interesting.
03:28It's come up in the news flow because Google has started to do deals with third parties.
03:32The latest reported one that spooked the markets was MetaWrite.
03:35But they had previously tried to make the TPU available to third parties with less success.
03:40And right now, from a volume perspective, Nvidia still holds 90% of the market, which, when I grew up in the Bloomberg newsroom studying from you,
03:48that's a technical monopoly, right? And that's an enviable position to be in.
03:53Here we go.
03:54Well, before we take the T Bucking said, it looks like you should respect when you want to trial health.
03:57Is that correct?
03:58Welcome back to aelnut.
03:59Let me see dumb at71 for a Schweur관она
04:00Where we are on the tabernacle?
04:01Where we come back to The conservatives from Del�로 Planla.
04:02There are people in that same way.
04:03Matt?
04:04So we'll be marking down the damn level in San Andreas.
04:05Right now,rrr.
04:06We're not able to focus on their other answer.
04:08You can get the mute people here.
04:09And yeah.
04:10I can.
04:11We're pretty missed.
04:12I can worse!
04:13But then there are some points.
04:14Now's the test guide
04:19I'm better.
04:19But people are still looking into the community.
Be the first to comment