Alright guys, I’m sorry. I know the thumbnail for this video is
a little bit grim, but let me explain the context so you
can understand the situation that’s unfolding between Nvidia and Intel.
A couple of years back, we made a video discussing how Intel Lost the CPU race..
For many years, they enjoyed the bulk of the CPU market share
before AMD started fighting back and giving Intel some very serious competition.
And then at that point, many people predicted that Apple was gonna ditch Intel
and switch to their very own ARM-based Apple Silicon chips,
and it would eventually lead to Intel quickly losing market share.
Then, just a couple of weeks ago, we made an updated video titled..
Apple is finally putting the last nail in Intel’s Coffin.
In that video, we discuss how Apple’s very first ARM-based M1 Macs
are already spelling trouble for Intel, as well as how desperate Intel is getting to do everything
they can to maintain market share, even stealing the famous Mac guy and turning him against Apple.
And now, we’re expecting the new M1X MacBooks to come later this year
that will absolutely destroy every Intel laptop out there, and making it even worse, Samsung,
Qualcomm and Microsoft are all making plans to bring ARM-based laptops to the market,
directly competing with Intel’s x86-based chips.
On top of that, ARM-based workstation servers
are starting to become a thing, with companies like Amazon and Scaleway switching to ARM.
And the worst part of all is that Intel currently has
zero plans to switch away from x86, so they could easily be left in the dust.
And now.. Nvidia just made a few massive announcements that show that they’re joining
the fight against Intel.. And at this point.. they’re basically coming in to finish the job.
As you probably already know by now, Nvidia is currently trying to buy ARM holdings
for $40 billion, the same company that licensed their ARM architecture to Apple many years ago.
And after yesterday’s Nvidia event, we now know why it’s such a big deal for them..
So let’s get right into some of the huge announcements that Nvidia just made.
As many of you know, nvidia offers an online game streaming service called Geforce now,
and they use their Bluefield-2 Data processing units, or DPUs, to help their service run better.
And idk if you know this or not, but Bluefield has been running on
ARM cores ever since the first model.
And now, they’re announcing the bluefield 3, which uses
16 very powerful ARM A78 cores, which will be available in 2022.
And they even announced the Bluefield 4 for 2024, and of course, it’s gonna stick with ARM.
Now I know a lot of you guys are gonna say that there are certain benefits to the x86
servers and workstations that Intel is currently supporting, but Nvidia has that covered as well.
They announced their new DGX Station 320G, which is an incredibly powerful
x86-based supercomputer meant for data centers,
using AMD’s Epyc 64-core 7742 CPU which is arguably better than Intel’s best Xeon chips.
And then Nvidia went on to announce the new DGX Superpod,
which is an upgraded model which is secured by their ARM-based Bluefield computers.
So on the x86 side.. Nvidia is already giving Intel a run for their money..
But ironically, Nvidia doesn’t really care that much about x86.. And here’s why.
Jensen, the CEO of NVidia, showed off a slide that explains how Nvidia’s GPUs are being
starved by CPU memory and PCI express bandwidth when using an x86-based CPU.
One solution is to create a larger and better x86 CPU package with more lanes and dedicated
channels to feed each GPU, but there’s still the problem of limited PCI express bandwidth.
So to solve that issue, Jensen mentioned that they could use NVLink instead,
their proprietary high-speed GPU interconnect technology, which is surely fast enough,
but here’s the main issue. He says that there is absolutely no x86-based CPU that has NVLink.
So guess what the ultimate solution is? If the shoe doesn’t fit, build your own shoe.
Yes, Nvidia just announced that for the first time ever,
they’re gonna make their own CPU for their future data-centers..
And they’re calling it.. Project Grace.. and you guessed it.. It’s not x86 based, it’s ARM-based.
And because it’s ARM-based, they were able to increase the system
memory to GPU bandwidth by 30X, which is insane!
And check out this quote by Jensen showing how he truly feels about ARM..
“Grace highlights the beauty of ARM,
their IP model allows them to create the optimal CPU for this application.”
So he’s basically saying that x86 is
dying, so they’re switching to ARM because it’s the only way to go for the future.
This is horrible news for Intel because as far as we know, Intel’s future roadmap is
100% x86-based. They have zero plans so far to switch to ARM
or any other efficient architecture, and that right there is gonna be their downfall.
Apple has already announced that they’re completely switching to
ARM-based Apple Silicon chips for their Macs.
And even AMD, the company who is giving Intel a ton of competition
on the x86 side, is also starting to work on ARM-based chip designs.
But Intel.. Nope. They like their x86 chips, and frankly,
I’m completely shocked that they haven’t at least announced plans to switch sometime in the future.
Everyone knows this is really really bad for Intel. And in my previous videos,
I made predictions that Intel would start to lose market share to new ARM-based products,
and it seems like today’s Nvidia event is the beginning of Intel’s downfall.
In fact, as soon as Nvidia’s event began streaming, Intel’s stock price began
to TANK, already being down 5% as of this moment.
But wait.. It gets even worse because Nvidia
made a whole lot more announcements that make it even worse for Intel.
They announced that the Swiss national supercomputing center will build the
world’s fastest supercomputer for AI, and they’re doing it with an ARM-based Grace CPU.
This is huge for the x86 vs ARM battle, proving to consumers and companies that ARM is now the way to
go for the future of data processing. And everyone knows that Intel is unfortunately sticking to x86.
Now as far as Nvidia’s roadmap.. They announced that for the time being,
they will include both x86 and ARM-based products
every year. And both of the architectures will be able to use and support their NVidia GPUs.
So just like Apple, Nvidia is still gonna support x86 while they’re transitioning to ARM,
but of course, we all know that at some point in the future, ARM will take over
completely, and Nvidia will be perfectly set and ready to make the switch.
And we know this for sure because of this quote from Jensen:
“ARM is the most popular CPU in the world, and for good reason,
it’s super energy efficient and it’s opening licensing model inspires blah blah blah”
But here’s by far the most telling and important thing that he said:
Jensen Huang: “For the market’s we serve, we can accelerate ARMs adoption.”
This means that Intel is basically screwed,
because Nvidia’s goal is quite literally to accelerate the adoption of ARM,
and the faster that happens, the more screwed Intel ultimately is.
But wait.. There’s more!
Nvidia announced that they’re partnering up with Amazon’s AWS Graviton servers,
which are, by the way, ARM-based, to improve their Geforce Now gaming service,
and the reason they’re doing this is because the Graviton delivers significantly better
price performance, obviously because it’s ARM-based.
Going even further, they announced an ARM machine for Scientific computing using the Ampere Altra,
which of course, is an ARM-based chip.
And then there’s a system for edge and enterprise which uses the Marvell Octeon,
you guessed it.. Arm-based.
But the next announcement is by far the most important to consumers like you
and I.. and this is just insane!
Nvidia is announcing that they’re gonna be working with MediaTek, the world’s largest
SOC maker to create a reference system and SDK to create quote: “excellent PCs and Notebooks”
Yes, Nvidia just announced that they’re joining the laptop and PC game, and they’re doing it
with MediaTek chips, which of course, are ARM-based.
This is horrible news for Intel because AMD is already starting to take market share away
from them in the laptop market, like the new Zephyrus G14 laptop that we recently reviewed.
On top of that, Apple has been killing it with their ARM-based Apple Silicon M1 Macs,
and in fact, Mac sales have literally doubled year over year all thanks to the new M1 chip.
And if you’re wondering why? Well, we compared our 13” M1 MacBook Pro the INtel-based 16” Model, and
the m1 was literally at 66% battery life after 3 and a half hours of testing, while the 16” models’
battery was almost completely drained, so we know that ARM is obviously the way to go for laptops.
And to make it worse, Samsung is now working on ARM-based chips that’ll go into laptops. Qualcomm
is basically doing the same thing. Microsoft announced plans for ARM-based Surface PCs,
which means that they’ll be working more on the ARM version of Windows.
And Now, Nvidia is joining in with ARM-based chips,
so Intel and their x86 chips are getting attacked from literally all sides.
Now going even further, Nvidia announced a bunch of other services and things like Jarvis,
which are all gonna be relying on Nvidia’s ARM-based computers.
But then, Nvidia took it to the next level and announced their Hyperion smart-car platform,
which will be using their powerful Orin chips.. And yes.. You guessed it.. They’re ARM-based.
And for the future, Nvidia went on to announce the next-generation Nvidia Drive Atlan
for 2024.. Which of course.. Will be using the new ARM-based Grace CPU.
So basically.. The point that I’m trying to make is that Nvidia is signing the death sentence
on traditional x86 chips, and since Intel’s current and future plans are purely x86-based,
Nvidia basically also signed Intel’s death sentence in the
process, especially for the workstation market, which is currently Intel’s bread and butter.
And on the consumer product side, Apple and AMD have already started to bully Intel into a corner,
let alone Samsung, Qualcomm and Microsoft,
which are making plans to join the fight against Intel with their ARM-based chips as well.
So yeh.. Things are not looking very good for intel.
In my last video, I predicted that more and more companies would begin to ditch x86 and
switch to ARM in both the consumer and datacenter markets, which would mean huge trouble for Intel,
and apparently.. It’s already happening.. And it’s happening fast.
So Intel.. If you’re listening.. your only chance is to announce plans for making
ARM-based chip designs.. like today! Because if you wait any longer.. It’s gonna be too late!
Hopefully you guys learned something new from this video,
and if you totally disagree with my thoughts on this whole ARM thing..
Let me know down in the comments below. Thanks for watching, and we’ll see you in the next one!