Tomasz Tunguz blog · 2024-05-23 · 742d

NVIDIA's AI Infrastructure Dominance: Growth Metrics, Cloud Economics, and Market Outlook

NVIDIA's data center revenue reached $26B with compute revenue up 5x and networking up 3x, capturing approximately 33% of major cloud providers' capex budgets. The company's profitability has surged dramatically, with net income reaching $29.8B in fiscal 2024 and a 62% LTM margin. GPU unit economics show $1 spent on NVIDIA infrastructure generates $5-7 in cloud provider revenue over 4 years, with demand for H200 and Blackwell chips exceeding supply.

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Metrics in this report

AWS Operating Margin

38%

benchmark

Amazon Web Services operating margin

Cloud Provider Capex Announcement

40b

total

Major cloud providers' data center capex spending

DGX H100 Hardware Cost

400-450k

range

Cost per DGX H100 unit

Data Center Revenue

26b

total

NVIDIA fiscal 2024

GPU Hosting Revenue per $1 Spend

5revenue ratio

current

Cloud provider revenue over 4 years per $1 NVIDIA infrastructure spend

GPU Hosting Revenue per $1 Spend (H200)

7revenue ratio

projected

Cloud provider revenue over 4 years per $1 H200 spend

H200 Concurrent Users (Llama 3 700B)

2400users

simultaneous

NVIDIA HGX H200 server capacity

H200 Token Throughput (Llama 3 700B)

24000tokens per second

single server

NVIDIA HGX H200 server performance

Inference Workload Share

40%

current

Proportion of NVIDIA data center revenue from inference workloads (trailing 4 quarters)

LTM Net Income

42.6b

trailing 12 months

NVIDIA latest trailing 12 months

LTM Net Income Margin

62%

trailing 12 months

NVIDIA latest trailing 12 months

Major Cloud Revenue from Data Center

13b

total

NVIDIA data center revenue from major clouds (45% of total)

Meta H100 Purchase Plan

350000H100 GPUs

by end of 2024

Meta's planned total GPU acquisition

Meta Llama 3 Training Cluster

24000H100 GPUs

total

GPU count used to train Meta's Llama 3 model

NVIDIA Capex Market Share

33%

estimated

Of major cloud customers' total capex budgets

Net Income Fiscal 2024

29.8b

total

NVIDIA fiscal year 2024

Net Income Growth (2020-2024)

10xmultiple

dollar terms over 2 years

NVIDIA profit growth from 2022 to 2024

Net Income Margin Fiscal 2024

57%

total

NVIDIA fiscal year 2024

Tesla H100 GPU Count

35000GPUs

total

NVIDIA GPUs deployed in Tesla training cluster

Training Workload Share

60%

current

Proportion of AI workloads dedicated to model training