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From the WSJ - confirms the coming exponential growth in AI contains some interesting nuggets.......

A Startup in the New Jersey Suburbs Is Battling the Giants of Silicon Valley
It’s not just Nvidia. There is another big winner of the AI boom—and it’s now competing with some of the world’s most valuable companies.
By
Ben Cohen

Aug. 25, 2023 at 8:30 am ET

Michael Intrator wasn’t planning to leave his job in finance to work in the world’s hottest industry. Until the day his office nearly overheated.

He was running a natural-gas fund in 2017 when he stumbled into another market that was about to become huge. Intrator and his colleague Brian Venturo purchased their first GPU, the graphics chip they initially used for cryptocurrency mining that has since become essential to a more lucrative business: artificial intelligence.

“All of a sudden it went from a GPU to a bunch of GPUs to the pool table being covered in GPUs,” Intrator said. He walked into work one morning that summer, after the air conditioning had been turned off for the weekend, only to find that the servers running their growing collection of GPUs made their Wall Street office feel more like a sauna. He freaked out. “We’re going to burn down this skyscraper,” he thought.

This suddenly terrifying hobby that started with a single chip soon became a company with tens of thousands of them. It’s based far from Silicon Valley and even farther from Taiwan, where chip-fabrication plants churn out today’s vital technology. But its office suite in the New Jersey suburbs is the global headquarters for one of the biggest winners of the AI boom.

COREWEAVE
Few companies have seen their value change as much in the past year as CoreWeave, a specialized cloud provider offering access to the advanced chips, futuristic data centers and accelerated computing that fuel generative artificial intelligence. It owns the mighty GPUs that have become engines of modern innovation, and CoreWeave sells time and space on supercomputers to clients in desperate need of the processing power that AI requires.

It’s how a business that most people have never heard of is playing an influential supporting role in a tech revolution.

CoreWeave has quickly and improbably become one of the largest GPU providers and leaders in the arms race for AI infrastructure. It raised more than $400 million this spring from chip maker Nvidia NVDA -2.43%decrease; red down pointing triangle and other investors. It secured another $2.3 billion in debt financing this summer to open data centers by essentially turning chips into financial instruments, using its stash of highly coveted Nvidia semiconductors as collateral. Now it’s racing to keep pace with the fastest software-adoption curve in history.

Infrastructure is not the first thing that comes to mind when you think about generative artificial intelligence—the tech behind chatbots, productivity tools and buzzy startups in every field. But you wouldn’t be thinking about generative artificial intelligence without solid infrastructure.

“It’s similar to electricity: Do you think of the power plant when you flip a light switch?” said Brannin McBee, CoreWeave’s chief strategy officer and third co-founder. “What we’re doing right now is building the electricity grid for the AI market. If this stuff doesn’t get built, then AI will not be able to scale.”

Building that stuff means the success of CoreWeave is by definition interwoven with the success of the entire AI economy.

GPUs that can be used for AI became the world’s most precious asset this year, six years after CoreWeave was founded by former commodities traders.

These chips have enough power to train large-language models and perform AI’s unfathomably complex tasks at ludicrous speeds. The market for this scarce resource is controlled by Nvidia, the top-performing stock in the S&P 500 index this year even before it reported another blowout quarter on Wednesday. Nvidia’s gain in value in 2023 alone is greater than the market capitalization of almost any other American company.

But the supply of AI chips isn’t nearly enough to meet the world’s demands. Elon Musk says it’s harder to buy GPUs than drugs. The whiteboard behind Venturo’s desk in CoreWeave HQ puts it another way: “I have not been asked for more GPUs in ___ days.”

That number has been zero since last summer.

https://www.wsj.com/tech/ai/nvidia-gpu-chips-coreweave-c8782435