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Pat Grady quote, Sep 20, 2023

Partner, Sequoia Capital · Sep 20, 2023 · Essay, Generative AI's Act Two

We did not anticipate the extent to which end user demand would outstrip GPU supply. The bottleneck to many companies’ growth quickly became not customer demand but access to the latest GPUs from Nvidia.

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Words found on the source page on Sep 25, 2026.

More from Pat Grady

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If the top U.S. labs have to give up on what is supposed to be really important, they will look very “catchable.” The policy creates a big incentive for some other parts of the world to invest a lot more in compute.Tyler CowenSep 22, 2026· Post
A world with sufficient compute is one where intelligence is a commodity, and in commodity markets margin comes from a superior cost structure, which I would expect the leading model providers to have, in part because they have a meaningful lead in scaling and can apply superior AI to their infrastructure.Ben ThompsonSep 21, 2026· Post
I have my doubts that the labs can afford to spend a constant portion of this compute on internal R&D as the total volume goes up, especially with plans to IPO, as they face increased scrutiny on basic economics.Nathan LambertSep 19, 2026· Post
It is important to not confuse massive steps in inference-time scaling, a dynamic which should be fairly predictable, with being the outputs of RSI, which is highly uncertain.Nathan LambertSep 19, 2026· Post
If you have five hours, you’re probably going to do a lot better. The AI models are pretty similar.Noam BrownSep 17, 2026· Interview
Demand for our custom AI accelerators and networking continues to be very strong. Q3 AI semiconductor revenue of $16.7 billion grew 221% year-over-year, and 54% quarter-over-quarter...Hock TanSep 2, 2026· Earnings
About this quote
Said by
Pat Grady, Partner, Sequoia Capital
Where
Generative AI's Act Two
Topics
Compute, Chips
Company
Sequoia Capital
Source
sequoiacap.com/article/generative-ai-act-two/

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