The big picture: Starting tomorrow, Nvidia is hosting its GTC developer conference. Once a sideshow for semis, the event has transformed into the center of attention for much of the industry. With Nvidia's rise, many have been asking the extent to which Nvidia's software provides a durable competitive moat for its hardware. As we have been getting a lot of questions about that, we want to lay out our thoughts here.
There's a way out from the intrusive cloud service
In a nutshell: Microsoft has been pushing OneDrive as the standard cloud storage solution for Windows for quite some time, to the point of user annoyance. The company usually tries everything it can to hinder user's choice on how to deal with the service, but things are seemingly starting to change.
Qualcomm does indeed have 50,000-ish employees, double those of Nvidia and AMD
Why it matters: After looking at revenue and operating income per employee for big semiconductor companies, we thought that was a fun exercise, so we have looked at another dozen tech companies in various sectors. Broadcom and Apple are in a league of their own – it is good to have a software or licensing business.
Editor's take: Much of the focus in semiconductors is on chip performance, and so for many outside the process it can be mystifying why sometimes a "better" chip loses out to a "weaker" chip. To name just one example, Intel still sells a lot of server CPUs despite their poor comparison with the latest AMD or Arm offerings.
Why it matters: OpenAI launched GPT-4 this week, an update to its popular language model and technology that aims to improve precision and is designed to act as an underlying engine for chatbots, search engines, online tutors, and more. GPT-4 is now available to paid subscribers and there's a waitlist to use the model via API. Furthermore, the AI race is on, with "AI startups" raising funds like there is no tomorrow and big tech companies like Google scrambling to make it known that they are not so far behind.