Nvidia and Accenture partnership is 'watershed' moment, says Wedbush's Dan Ives

We just heard from NVIDIA CEO Jensen Huang and Accenture CEO Julie Sweet about their expanded partnership to drive enterprise AI adoption. And joining us now to break it all down, Dan Ives of Wedbush, Patrick Moorhead of Moor Insights and Strategy. Pat, you're remote, so I want to get your take first here. It's hard to know. We've seen Accenture team up with Microsoft. They're a big go to market partner. How big a deal does this have the potential to be, you think, now? So I think this is a really big deal because it hits it, John, what you and I have talked about before on the show is what are the downstream effects of AI that's being built in the infrastructure? And we talked about what has to connect is this connection to get the ball rolling beyond infrastructure. So this is exactly the type of deal that's happening that could potentially do that to accelerate the enterprise. And this is a big deal, not just for Accenture and NVIDIA, but for the entire industry. So I want to get your thoughts on this, Dan, especially because Jensen Huang literally said now is the beginning of this next wave that he thinks this is going to be the biggest wave, this enterprise adoption. And then as that rolls out, you're starting to talk about industrial AI, which we mentioned it before the break. Honeywell CEO said to me yesterday, Vimal Kapoor said to me yesterday, it's the difference between predictive versus deterministic AI, two very different models, two very different outcomes. A trillion dollars of AI cap X, we believe, next three years. And I think what Patrick talks about is a great point. We are just in the first inning of where AI is going. But partnerships like this, I think there's a watershed partnership. And I think what you heard from the godfather of AI, Jensen, what Julie talked about, this is now it's the multiplier for every dollar spent on a NVIDIA chip. When there's an eight to ten dollar multiplier across the rest of tech infrastructure services, you talk about industrial sovereign AI. It is just the start. It continues to be our view. It's 9 p.m. That AI party that goes to 4 a.m. And I think what we see here, it's just starting to play out. So, Dan, you can kind of see what Jensen and NVIDIA are doing. This this pace, yearly pace on the platforms and technology, these partnerships throughout different areas of the ecosystem that don't just involve, hey, here's some chips, but really building on top of our technology. Is it coming down to an eventual zero sum situation where NVIDIA pulls away and when they win big, everybody else, at least who competes with them on the chip side, thinking AMD and Intel are at bigger risk of losing? Yeah, no doubt. We used to see clearly watching this interview and everyone across the industry, because right now they're the only game in town. They're just going to continue to expand that mode. It's the Oracle model. It's the Microsoft model. And I think what they're trying to do is just gain more and more share when you talk about that revenue opportunity. And I think that's what Jensen's going after. I think the big question today is we talk about this trillion dollars of AI CapEx, fourth industrial revolution playing out. But it is going to be a game of thrones battle with other big tech players, because Microsoft, Google, Amazon, everything that you talk about in the show. This is now starting to get into that second, third, fourth derivative that I know, you know, Patrick and myself, we talk about a lot. And Patrick, I mean, I'm just going to stick with this discussion that we're having, what this means for the competitive mode for NVIDIA, but also what it means for how as it builds out this platform, as it now reaches across what he used. Connecting fabric was the term he used with his partnership with Accenture. What this means in terms of making NVIDIA a newer, bigger, more formidable competitor with not just other chip players. So this 100% increases the mode, more deals like this. And remember, the company cut deals like this with IBM Consulting six months ago. So they're going down the line with the major GSIs. And Jensen said it perfectly. We just don't do chips. We do chips. We do comms chips, CPUs. We do racks. We do networking. We do entire data centers and then put the software on top of that. And then you layer in these types of embeddings, as I will call this. What may or may not have come across in this deal is that NVIDIA software is going to be integral inside of these solutions from Accenture. And what that does is that builds in a lock in that builds a moat. And yes, further down the line, competitors will come in to be able to do that. But it takes time. And people are very happy with the investment that NVIDIA is making into this. And nobody wants to get left behind. Just like we saw FOMO in the data center build out. Nobody wants to get left behind with the global systems integrators and everything in between. One of the big issues that hasn't been discussed yet is just the I'll call it the pitiful use in the enterprise of AI. Right. And I think we're 18 to 24 months current course and speed to start seeing that hockey stick. And this is a deal that could potentially make that happen. Maybe it shaves off time. I'm optimistic about this deal that it will.