Databricks CEO Predicts Major Drop in AI Chip Prices

Nvidia’s stock has been on a tear as major technology firms and app developers clamor for the company’s server chips for artificial intelligence, creating a shortage. But over the next year, prices for these chips, known as graphics processing units, will plummet, throwing a wrench into the business models of numerous major companies and startups, said Ali Ghodsi, CEO of Databricks, a $43 billion-valuation developer of software that helps companies use AI.

Just as internet bandwidth constraints largely evaporated in the 2000s, “the same thing will happen with GPUs,” he said in a conference call with The Information subscribers.