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TechExec Week 22 - Friday Edition
(Total read time: 3 minutes)
Hey there,
Welcome to Week 22 of TechExec - the newsletter that turbocharges your growth to become a Tech Executive!
As always, we are sharing a new set of BLTs this week
💼 B - a Business concept / theory / story
💝 L - a lifestyle advice
🤖 T - a Tech explainer
Here is the schedule:
Monday —>💼 B - a Business concept / theory / story
Wednesday —> 💝 L - a lifestyle advice
Friday —> 🤖 T - a Tech explainer
This week we covered Form S-1 on Monday and the Spotlight Effect on Wednesday.
Today’s Tech Explainer is on GPUs!
💼 T - GPUs
Prior to 2012, the only group of people who knew about Graphics Processing Units (GPUs) were hardcore gamers. Then a bunch of computer science researchers found out that one could use GPUs to multiply-and-accumulate (MACs), the building blocks of neural networks. As if that were not enough, another group of smart minds deduced they could use GPUs for crypto mining. And the combination of both changed the world as we know it and, most importantly, sent Nvidia stock skyrocketing. Fascinating, isn’t it? Let’s dive deep into the world of GPUs!
A GPU is like a hyper-focused, ultra-efficient version of a CPU, designed to execute thousands of simultaneous operations with remarkable speed and precision. GPUs work by breaking down complex computing tasks into thousands of smaller tasks that can be processed concurrently. This is in stark contrast to a CPU which handles a few threads at a time. By tackling multiple tasks at once, GPUs can process large blocks of data simultaneously, making them ideal for tasks that require high levels of parallel processing, such as image and video rendering, machine learning, and scientific computing.
The applications of GPUs are vast and diverse. Beyond their original purpose in gaming, they are now utilized in a wide array of fields. In the realm of artificial intelligence and machine learning, GPUs are indispensable for training complex neural networks. In scientific research, they are used for tasks such as modeling climate change and mapping the human genome. In the creative industries, they power the rendering of high-definition images and videos. Furthermore, in the financial sector, they are used for risk modeling and simulation.
However, recent trends have significantly affected the supply and demand dynamics of GPUs in the market. Cryptocurrency mining has been a major driver of GPU demand. Miners use GPUs to solve complex mathematical problems that validate transactions and secure a blockchain network. As the value of cryptocurrencies soared, so did the demand for GPUs, leading to global shortages.
Additionally, the COVID-19 pandemic has also played a role in disrupting the GPU market. With more people working from home and turning to gaming as a form of entertainment, demand for computers and gaming consoles has skyrocketed, further straining the supply of GPUs. On the supply side, manufacturing disruptions due to pandemic-related restrictions have compounded the problem.
The development of AI and machine learning technologies is another factor contributing to the increasing demand for GPUs. As these technologies become more pervasive, the need for powerful computational tools like GPUs is expected to continue growing.
Believe it or not, there is a huge backlog for the most powerful GPUs in the world. Who would've thought we'd see the day where GPUs would be as scarce as toilet paper during a pandemic? But here we are! This has led to a startling rise in prices, making GPUs the new must-have luxury item. In fact, Nvidia has been on an investing spree, buying equity in the hottest AI startups, and the rumor has it, there has been no cash exchanged. Just kidding! Some cash was exchanged, but GPUs are still part of the deal.
Now, if you'll excuse me, I'm off to put my name on a waitlist for a GPU. I hear the wait time is only slightly longer than the time it takes for a comet to complete an orbit around the sun.
Takeaway: GPUs are incredibly versatile and powerful components of modern computing systems. Their ability to handle complex computations rapidly and efficiently makes them indispensable in a wide array of applications, from gaming to scientific research, and from artificial intelligence to financial modeling. However, recent trends, including cryptocurrency mining and the rise of remote work and gaming, along with supply chain disruptions due to the pandemic, have created a challenging market environment for GPUs.
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