Part 8/16:
- Inference scaling: Increasing tokens per prompt or the complexity of output, which determines real-world usability.
These interconnected laws result in an exponential increase in computational demands, with demand outpacing traditional silicon scaling—creating an unprecedented shortfall that industry leaders must address.
Nvidia's Strategy: Creating New Markets
Nvidia's approach to the AI revolution exemplifies a focus on building ecosystems and entire markets from scratch. Instead of competing solely on existing benchmarks like text-to-text models, Nvidia chases multi-modality, large multiformat models, and complex scientific problems—think protein folding or drug discovery.