The article discusses predictions about AI chip supply and demand dynamics for 2025, focusing on insights from Lambda Labs’ COO Mitesh Agrawal and Positron CEO Rostem Haditaghi. They suggest that while Nvidia’s H100 GPU shortage will likely persist through 2024, the situation could improve by 2025 due to increased production and new market entrants. The experts predict that H100 prices might drop from current levels of $40,000-$50,000 to around $25,000-$30,000 by 2025. They emphasize that despite new competitors entering the market, Nvidia will likely maintain its dominance due to its established software ecosystem and first-mover advantage. The article highlights how the current chip shortage has led to creative solutions, including companies buying used GPUs and exploring alternative chips. Both experts agree that while AMD and Intel are making strides in AI chips, they still need to develop robust software ecosystems to effectively compete with Nvidia. The analysis also touches on the broader implications for the AI industry, suggesting that easier access to AI chips could accelerate AI development and deployment across various sectors. The experts conclude that while the supply chain will improve, the demand for AI chips will continue to grow, making it crucial for companies to plan their AI infrastructure strategies carefully.
Source: https://www.businessinsider.com/lambda-labs-coo-mitesh-agrawal-positron-ceo-nvidia-ai-chips-2025-1