Monday, September 23, 2019

Chips: The World's Largest Semiconductor Chip Will Power "Supercomputing hog U.S. Department of Energy"

We've looked at Cerebras a few times, most recently when they came out of stealth: "Artificial Intelligence: The World's Largest Chip Is As Big As Your Head and Contains 1.2 Trillion Transistors"
And here's our go-to guy for what's what on the frontier of tech, Tiernan Ray at ZD Net, Sept. 17:

Cerebras’s first customer for giant AI chip is supercomputing hog U.S. Department of Energy
Cerebras Systems, the California startup that last month came out of the stealth mode with the world's biggest chip, dedicated to artificial intelligence, announced its first customer for its computer system, the U.S. Department of Energy. The announcement follows announcements earlier this year for future supercomputing systems made by Intel and AMD and Cray.
Cerebras Systems, the Los Altos, California startup that came out of stealth mode last month, revealing the world's largest computer chip, announced Tuesday morning its first customer, the U.S. Department of Energy. 

The DoE's use of the Cerebras computers is taking place first at Argonne National Laboratory and at Lawrence Livermore National Laboratory, but is expected to spread to other DoE facilities, according to Cerebras.

Supercomputing contracts, sometimes referred to as "high-performance computing," have been a lucrative arena for chip makers to prove themselves by offering up their top-of-the-line parts for massively parallel systems. The DoE has been especially active as a customer, of late.

In March, Intel, in partnership with computer maker Cray, announced a $500 million deal with the DoE to deliver to the Department the first "exaFlop" computer by 2021, code-named "Aurora." And Advanced Micro Devices in May announced a $600 million system contract with Cray for the Department, nicknamed "Frontier," also to arrive in 2021. (Cray, which is getting bought by Hewlett-Packard Enterprise, announced a third supercomputing deal with the Department.)....

Also at ZD Net, August 28:
Cerebras has at least a three-year lead on competition with its giant AI chip, says top investor
And previously at Climateer Investing:
May 2018 
"Artificial intelligence chips are a hot market." (NVDA; GOOG)
In March 2017 our thinking on NVIDIA was:
"We focus on the stock, not the company. The company should be fine for at least the next couple years until the artificial intelligence biz catches up to NVIDIA and either takes a different approach or a really different approach and goes quantum computer."
Here's one of the competitors.
From Barron's Tech Trader Daily, May 14
Cerebras: The AI of Cheetahs and Hyenas...MORE
August 2018
Ahead of NVIDIA Earnings: The Last of the "Easy" Comparisons (NVDA)
Beating that Q3 2017 EPS, 90 cents, by double i.e. $1.80 or more, is doable but AI and data centers will have to pick up the slack from the Q1 and Q2 cryptocurrency bump that started declining with Bitmain and other miners use of ASICs rather than GPU's.

Going forward the trend toward specialist proprietary chips, see Tesla's development of their own chips etc, etc will leave NVIDIA with a couple holes in the potential addressable markets they will want to fill.

Additionally, the smaller pups, some still in stealth, are nipping at the big dog's heels, making it more expensive for NVIDIA to maintain their edge in architecture....
August 2018
Artificial Intelligence Chips: Past, Present and Future

September 2018

June 2019
Just confirming some priors here (with a small victory dance)

June 2019
Chips: NVIDIA Begins To Embrace the Move Toward More Specialized Chips (NVDA; INTC; AMD; GOOG; XLNX)
See I told you I wasn't crazy. Something we've been babbling about for a couple years.
Some links below.
From MIT's Technology Review:....