You Should Be Building in the Hidden Layers
<p>In the 60s, all eyes were focused on the race between companies developing mainframes. In the 70s and 80s, it was the competition to win the personal computer space. Headlines in influential periodicals of the time boasted about the transformative power of up-and-coming competitors like Altos, Tandy, Wang, Zenith, Olivetti, Commodore, Amstrad, Apricot, etc, etc. Investors flocked to back these companies. Any one of them could be <a href="https://www.youtube.com/watch?v=XDvTTFHFQG8&utm_source=www.zaxis.page&utm_medium=newsletter&utm_campaign=you-should-build-in-the-hidden-layers" rel="noopener ugc nofollow" target="_blank"><em>the next big thing</em></a>.</p>
<p>Today, I’m willing to bet very few people have ever heard of any of these names (except perhaps Commodore, which is better remembered these days for its gaming consoles than its computers). Yet during that same era, something else was happening. Founded in 1968, the California-based Intel began producing microprocessors. Every one of those companies I listed above became a customer. And eventually so did a few other companies you might have heard of: Apple, IBM, Dell, HP, Lenovo, Microsoft… The list goes on. To this day, Intel sells a strong supermajority of personal computer and server CPUs in the world.</p>
<p>When graphical interfaces became popular in the 1990s, these computer companies continued competing in an ever-evolving space. But it was the 1993-founded NVIDIA that sold to almost all of those and more the components required to power their graphics (GPUs). This is NVIDIA’s stock over the past few years, three decades into the company’s life, with a market cap exceeding one trillion:</p>
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