E167: Nvidia smashes earnings (again), Google's Woke AI disaster, Groq's LPU breakthrough & more

**Jason Calacanis** (0:00)
All right, everybody, welcome back to your favorite podcast of all time, the All-In Podcast, episode 160 something.
With me again, Chamath Palihapitiya. He's the CEO of a company and invests in startups, and his firm is called Social Capital. We also have David Friedberg, the Sultan of Science. He's now a CEO as well. And we have David Sacks from Craft Ventures in some undisclosed hotel room somewhere. How are we doing, boys?

**Chamath Palihapitiya** (0:29)
Good. Thank you. This is an odd intro.

**David Sacks** (0:31)
Can your intro be any more low energy and dragged out?

**Jason Calacanis** (0:36)
I'm sick.

**David Sacks** (0:38)
I'm trying to fake the effort.

**Jason Calacanis** (0:39)
All right. Here, give me one more shot. Watch this.
Watch this. Watch professionalism. You want professionalism?

**David Sacks** (0:43)
Fake the effort.

**Chamath Palihapitiya** (0:44)
Come on.

**Jason Calacanis** (0:45)
Here we go. You want professionalism? I'll show you guys professionalism.

**Chamath Palihapitiya** (0:48)
Is that Banaka? What was that? Is that Banaka?

**Jason Calacanis** (0:50)
Oh, this is the.
All right, everybody. Welcome to the All-In Podcast, episode 167, 168 with me, of course, the Rain Man himself, David Sacks, the Dictator Chairman, Chamath Palihapitiya, and our Sultan of Science, David Friedberg. How are we doing, boys?

**Chamath Palihapitiya** (1:23)
Great. How are you?

**Jason Calacanis** (1:24)
Is the high energy enough for you?

**David Sacks** (1:25)
Is it 167 or 168?

**Jason Calacanis** (1:27)
I don't know. Who cares?

**David Sacks** (1:28)
Can we at least get you to know the episode number?

**Jason Calacanis** (1:31)
Who cares? Unfortunately or fortunately, we're going to be doing this thing forever. The audience demands it. It doesn't matter. This is like a Twilight Zone episode. We're going to be trapped in these four bubbles forever.
It's like Superman.

**Chamath Palihapitiya** (1:45)
It is.

**Jason Calacanis** (1:46)
It is the gift in the Curse of Spockets.

**David Friedberg** (1:47)
When they were trapped in that glass, Zod?

**Jason Calacanis** (1:51)
Kneel before Zod.

**David Friedberg** (1:53)
He spun through the universe in the plastic thing forever for infinity?

**Jason Calacanis** (1:58)
Until Superman took the nuclear bomb out of the Eiffel Tower and threw it into space and blew it up.

**David Friedberg** (2:05)
My background today, I think I'm going to have to change now that you've referenced this important scene.

**David Sacks** (2:10)
That was the best moment of that movie, J. Where Terrence Stamps says kneel to the president and the president says, Oh God. And then Terrence Stamps was like, Zod.
Not God, Zod.

**David Friedberg** (2:23)
Zod.

**Jason Calacanis** (2:23)
Kneel before Zod.

**David Friedberg** (2:25)
Was that Superman 2 or 3?

**Jason Calacanis** (2:26)
Superman 2 is pretty much the best. You know, like Empire Strikes Back, like Terminator 2, it's always the second one, that's the best one. All right, everybody, we got a lot to talk about today. Apologies for my voice, I got a little bit of a cold. Nvidia blew the doors off their earnings for the third straight quarter. Shares were up 15% on Thursday, representing a nearly $250 billion jump in market cap. So, let's just let that sit in for a second.
This is the largest single day gain in market cap. $247 billion added in market cap. Previously, Meta did something similar earlier this year. Remember, everybody was down on that stock because they were doing all the crazy stuff with Reality Labs and then they got focused and laid off 20,000 people. They added $196 billion.
In other words, they added like 2.5 Airbnb to their valuation. But let's just get to the results. The results are absolutely stunning. Dare I say unprecedented. Q4 revenue, $22.1 billion. That's up 22% quarter over quarter, up 265% year over year.
The net income was $12.3 billion, 9x year over year. And the gross margin of 76% was up two points quarter over quarter, 12.7% year over year. But look at this revenue ramp. This is extraordinary. Q1 of 2024 This juggernaut starts and it does not stop. And it doesn't look like it's going to stop. Just to run up from $7 billion all the way to $22 billion in revenue for the quarter.
Absolutely extraordinary. And if you want to know why this is happening, why is Nvidia putting up these kind of numbers, this chart explains everything. This is all about data centers. Obviously, if you heard of Nvidia before, the AI boom, it was gaming, professional visualizations, you know, I think people making movies and stuff like that. Autos used Nvidia for self-driving, that kind of stuff. But if you look at this chart, you'll see data centers just starting four quarters ago.
Starts to ramp up as everybody builds out the infrastructure for new data centers to deal with the general AI.