Nvidia CEO said they spent $10 Billon dollars on R&D for their new chip. What exactly does an R&D worker do all day? Where does this money go?

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How does a chip go from being an academic theory to a $10 billion R&D Project?

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Anonymous 0 Comments

– Good researchers with appropriate skills and background are rare and demand a high compensation.
– Research is largely automated these days, involves a lot of complex computations and thus you need a budget for all the hardware and electricity to actually do that, and for as complex a modeling that chips are, this can be a lot. Every large IT company has a dedicated computational cluster specifically for internal research nowadays, those are far from free.
– Research goes beyond desk work, it also involves prototyping and for novel technology like chips that might mean constructing new assembly lines at factories and new one-of-a-kind hardware that can consequently get ludicrously expensive.

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