Data Center revenue reached $62.3 billion in Q4, up 75% year-over-year, and now represents approximately 91.5% of total revenue. Within that segment, networking revenue hit roughly $11 billion, up more than 3.5x year-over-year, driven by NVLink, Spectrum-X Ethernet, and InfiniBand demand tied to next-generation AI systems.
One good test on the AI bubble is to recognize that Nvidia has now millions of Nvidia GPUs in every cloud. We're everywhere and if you try to rent an Nvidia GPU these days, it's so incredibly hard. The spot price of rentals is going up. Not just the latest generation, but two-generation-old GPUs,
How very "Here we go round the mulberry bush," right? Microsoft buys Anthropic's models; Anthropic runs Claude on Microsoft's Azure cloud; Anthropic buys Nvidia's chips; and both Microsoft and Nvidia invest in Anthropic. If that sounds like a big circle going round and round and back again... that's because it is. And honestly, it's making me dizzy.
The OpenAI CEO said in a post on X on Monday that the company is launching "new compute-intensive offerings" over the next few weeks. Altman said because of the costs involved, some features will initially be limited to Pro subscribers, while certain new products will have extra fees. Altman framed the push as an experiment in stretching AI infrastructure to its limits: "We also want to learn what's possible when we throw a lot of compute, at today's model costs, at interesting new ideas," he wrote.
