GQG Partners deployed a team of former investigative journalists to examine the surging demand for Nvidia’s graphics processing units (GPUs) amidst widespread rumours of shortages. GQG Partners is a global investment management firm focused on delivering long-term investment results for its clients. The firm manages investments across various asset classes and geographies. Their investigation revealed an unexpected abundance of AI chips, with resellers offering substantial discounts and immediate shipping.
According to GQG senior investment analyst Polyana Da Costa, the team’s findings contradicted the prevailing narrative of insatiable demand for GPUs. Da Costa noted the striking availability of H200 chips at a 40 per cent discount, raising concerns about a potential AI bubble. She leads GQG’s team of non-traditional analysts, comprised of ex-journalists from prominent publications, whose role is to provide on-the-ground insights and challenge Wall Street’s conventional wisdom.
Da Costa drew parallels between the current market and the lead-up to the global financial crisis (GFC), highlighting similarities in acknowledging and downplaying the bubble’s impact. She also pointed to the complexity of financing structures and the reliance on questionable data, echoing concerns from the pre-GFC era. The team’s scepticism extends to artificial general intelligence (AGI), with on-site investigations in Silicon Valley revealing that AGI is further away than many anticipate.
Despite executives touting AGI as a future moneymaker, direct observations of AI start-ups revealed troubleshooting difficulties and weaker-than-expected scenarios. Da Costa cautions against prematurely betting on explosive AI growth, suggesting that progress may be slower than widely believed.
