Nvidia Part III: The Dawn of the AI Era (2022-2023)

**Ben Gilbert** (0:00)
You like my Bucs T-shirt?

**David Rosenthal** (0:01)
I love your Bucs T-shirt.

**Ben Gilbert** (0:03)
I went for the first time, what, two weeks ago, when I was down for meeting a benchmark and the nostalgia in there is just unbelievable.

**David Rosenthal** (0:10)
I can't believe you hadn't been before. I know Jensen is a Denny's guy, but I feel like he would meet us at Bucs if we asked him.

**Ben Gilbert** (0:17)
Or at the very least, we should figure out some Nvidia memorabilia to get on the wall at Bucs.

**David Rosenthal** (0:22)
Totally.

**Ben Gilbert** (0:23)
Fit right in. All right, let's do it.

**David Rosenthal** (0:25)
Let's do it.

**Ben Gilbert** (0:43)
Welcome to Season 13, Episode 3 of Acquired, the podcast about great technology companies and the stories and playbooks behind them. I'm Ben Gilbert.

**David Rosenthal** (0:52)
I'm David Rosenthal.

**Ben Gilbert** (0:53)
We are your hosts. Today, we tell a story that we thought we had already finished, NVIDIA, but the last 18 months have been so insane listeners that it warranted an entire episode on its own. So today is a part 3 for us with NVIDIA telling the story of the AI revolution, how we got here, and why it's happening now, starting all the way down at the level of atoms and silicon. So here's something crazy that I did a transcript search on to see if it was true.
In our April 2022 episodes, we never once said the word generative. That is how fast things have changed.

**David Rosenthal** (1:29)
Unbelievable.

**Ben Gilbert** (1:30)
Totally crazy. And the timing of all of this AI stuff in the world is unbelievably coincidental and very favorable. So recall back to 18 months ago. Throughout 2022, we all watched financial markets from public equities to early stage startups to real estate just fall off a cliff due to rapid rise in interest rates. The crypto and Web 3 bubble burst, banks fail. It seemed like the whole tech economy and potentially a lot with it was heading into a long winter.

**David Rosenthal** (2:04)
Including Nvidia.

**Ben Gilbert** (2:06)
Including Nvidia, who had that massive inventory write-off for what they thought was overordering.

**David Rosenthal** (2:13)
Wow, how things have changed. Yeah.

**Ben Gilbert** (2:16)
But by the fall of 2022, right when everything looked the absolute bleakest, a breakthrough technology finally became useful after years in research labs. Large language models or LLMs built on the innovative transformer machine learning mechanism burst onto the scene. First, with OpenAI's ChatGPT, which became the fastest app in history to 100 million active users, and then quickly followed by Microsoft, Google, and seemingly every other company. In November of 2022, AI definitely had its Netscape moment, and time will tell, but it may have even been its iPhone moment.

**David Rosenthal** (2:55)
Well, that is definitely what Jensen believes.

**Ben Gilbert** (2:58)
Yep. Well, today we will explore exactly how this breakthrough came to be, the individuals behind it, and of course, why the entire thing has happened on top of Nvidia's hardware and software. If you want to make sure you know every time there's a new episode, go sign up at acquired.fm slash email. You'll also get access to two things that we aren't putting anywhere else. One, a clue as to what the next episode will be, and two, follow-ups from previous episodes from things that we learned after release. You can come talk about this episode with us after listening at acquired.fm slash slack. If you want more of David and I, check out our interview show, ACQ2. Our next few episodes are about AI with CEOs leading the way in this world we are talking about today, and a great interview with Doug DiMiro where we wanted to talk about a lot more than just Porsche with him, but we only had 11 hours or whatever we had in Doug's garage. So a lot of the car industry chat and learning about Doug and his journey in his business, we saved for ACQ2, so go check it out.
One final announcement. Many of you have been wondering, and we've been getting a lot of e-mails, when will those hats be back in stock? Well, they're back. For a limited time, you can get an ACQ embroidered hat at acquired.fm slash store. Go put your order in before they go back into the Disney vault forever.

**David Rosenthal** (4:19)
This is great. I can finally get Jenny one of her own, so she stops stealing mine.

**Ben Gilbert** (4:24)
yes. Well, without further ado, this show is not investment advice. David and I may have investments in the companies we discuss, and this show is for informational and entertainment purposes only. David, history and facts.