Limitations of the AI Scaling Law and NVIDIA's Bio-Platform Monopoly Strategy

1. Limitations of the AI Era Driven by Massive Capital

Until now, the formula for AI companies to make money in the stock market was simple: "Spend a lot of money to buy many computers (GPUs) and feed them a lot of data, and the AI will unconditionally become smart." This is called the 'Scaling Law.' Recently, however, a massive wall has been discovered where this formula no longer works.

• Defeat of the World's Best Geniuses: The world's leading geniuses—including Google, Silicon Valley engineers, and global pharmaceutical researchers—all participated in the 'Virtual Cell Challenge' hosted by NVIDIA.

• Failure of Giant Corporations (Big Tech): Naturally, it was expected that giant corporations with abundant capital and supercomputers would win, but the result was the exact opposite. Big Tech companies that pushed forward with money suffered a crushing defeat against a very small bio-startup and a university coalition team.

• The Massive Wall of Living Organisms: The 'cell' of a living organism was not an area that could be predicted simply by increasing computer capacity. It is an event that proved the limitations of existing deep learning methods alone, as complex causal relationships—where tens of thousands of genes turn on and off in real-time—are entangled.

2. Common Misconceptions and the Stock Market Bubble

One of the most frequent mistakes stock investors make is jumping in late into "what everyone else says is good."

• Services Like ChatGPT (LLMs) Are Already a Red Ocean: Many people still pay attention to the 'AI that teaches words' market, such as ChatGPT or Google Gemini. Many startups in South Korea are also jumping into this. However, speaking coldly, this market has already been preempted by global giant corporations. Experts view that most of the investment funds of small domestic and foreign AI companies, which lack technical expertise and capital, will eventually vanish into thin air (bankruptcy).

• The Perspective of Seeing It Only as a Semiconductor Company: If you look at NVIDIA simply as an 'AI chip (semiconductor) manufacturer,' you cannot understand why this company maintains the world's highest level of market capitalization. This is because chips can eventually be caught up by other competitors (AMD, Intel, etc.) or can be manufactured in-house by Big Tech companies.

3. The 'Century-Long Plan' Designed by NVIDIA and the Core of Investment

The final conclusion and core message delivered through this 'Virtual Cell Challenge' is that "NVIDIA has set the stage to become the 'landlord (platform)' of the global bio and pharmaceutical industry, going beyond simply selling chips."

• NVIDIA's Next Target, the Hundreds of Trillions of Won Drug Discovery Market
  Currently, in the artificial intelligence market like ChatGPT, the volume of computers (GPUs) that Big Tech companies can buy is somewhat fixed. NVIDIA has designated 'Bio (drug discovery)' as the next market to expand its revenue more explosively. Drug discovery is a massive money-wasting market that takes an average of 10 years and has a 90% failure rate, so if this can be experimented with in advance via computers (virtual cells), it will become a massive hit.

• Replication of the Monopoly Ecosystem (Software Dependency)
  NVIDIA gave half of the prize money for this competition in the form of 'credits to use their own supercomputers.' They set the stage so that the winning geniuses must unconditionally play only within NVIDIA's system to conduct future research. The very method they used in the past to make IT developers addicted to their software (CUDA) is now being applied exactly the same way to doctors, biologists, and pharmaceutical company employees.

• Changes in the Basic Laboratory Bill
  In the past, the largest expenditure of biological laboratories was the cost of reagents or growing cells, but now, NVIDIA's computer usage fees consume the largest amount of money. In other words, whether anyone succeeds or fails in drug discovery, NVIDIA has already completed a structure where it sits back and unconditionally earns a toll fee.

💡 Summary from a Stock Investment Perspective
The 'Virtual Cell (Bio AI)' field is still empty land without an absolute ruler. However, no matter what genius company emerges in the future to plant its flag on this empty land, that company will ultimately have no choice but to pass through NVIDIA's computers and ecosystem. This is the core reason why the author of this report additionally purchased (bought more of) NVIDIA stock. '

Original source
젠슨 황도 경악한 결과, 인류 역사상 최대 혁명이 시작됐다