Customer Turned Competitor

Also in today's edition: The ‘Wolfram’ Surprise, Make Oracle Great Again & Pepperfry Data Science Jobs

In 1963, Ferruccio Lamborghini, a successful tractor manufacturer, visited Enzo Ferrari to address issues with his Ferrari's clutch. Ferrari's dismissive response, “Let me make cars. You stick to making tractors”, fueled Lamborghini's determination to build better sports cars. The rest is history. 

Similar behaviour has been observed in the AI and semiconductor ecosystem, where customers are turning competitors and vice versa. For instance, Microsoft is planning to develop its own AI chips. With this, Microsoft joins other major cloud computing providers such as GCP and AWS, who are also developing chips for AI training and inference, reducing reliance on NVIDIA’s products and services. But, at the same time, these cloud providers also promote NVIDIA GPUs for their enterprise customers.