The increasing interest in ChatGPT and similar AI applications has led to a staggering rise in Nvidia H100 GPUs, with prices now hovering around $40,000. In contrast, the crypto mining industry has experienced a downturn, primarily due to Ethereum’s transition to a proof-of-stake model.
The Growing Demand for Nvidia GPUs in ChatGPT Wake
Prominent tech industry figures like John Carmack and the general public alike have taken notice of the surging prices of Nvidia GPUs. For example, the H100 deep learning GPU, specifically designed for specialized applications, has seen its price skyrocket to an astounding $40,000 per unit, with some sellers even listing it for several thousand dollars more. Just a short while ago, the retail price of the H100 was under $35,000.
Using hardware such as the H100 for constructing language learning models and AI applications has recently transformed it into a highly sought-after commodity. Due to the immense computational power required by these models, the demand for hardware like Nvidia’s H100 has surged.
New Hardware Developments on the Horizon
Companies are expected to develop new types of hardware to cater to this growing demand. The tech industry has already earmarked 2023 as one of the most exhilarating years, with the potential for new ChatGPT models stirring excitement among the public.
The emergence of new AI applications, particularly ChatGPT and its alternatives, has unsurprisingly driven the demand for related hardware. As a result, major cloud computing providers, including Amazon, Microsoft, and Oracle, are now offering the H100 series, also known as Hopper GPUs, to accommodate the increasing demand. According to Nvidia, the H100 is the most potent GPU for AI applications.
ChatGPT utilized as many as 10,000 GPUs for its training model. That is merely a glimmer of what the future may hold as AI technology becomes more commonplace.
The Crypto Mining Industry’s Decline
While the AI industry is booming, the crypto-mining industry has hit a rough patch. The excitement surrounding this market has subsided, with the asset class suffering a significant blow last year when Ethereum transitioned to a proof-of-stake mechanism.
Although alternative cryptocurrencies are still available for GPU mining, their profitability is often minimal and subject to high volatility.
The soaring popularity of ChatGPT and similar AI applications has had a remarkable effect on the GPU market, driving up the prices of Nvidia H100 GPUs to unprecedented levels.
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