In the latest AI revolution, Nvidia is the main beneficiary of the growing interest in the market. However, the CEO of the company, Jensen Huang believes that there is no need to invest trillions of dollars in the industry.
Huang commented on this because of the current initiative of OpenAI CEO Sam Altman, who is after a $5-7 trillion dollar investment to help build new chip factories for AI growth in the market. However, according to the Nvidia CEO, it will be enough to continue the development of new technologies and architectures at the same pace as we are going. Then, in the future, the need for increased resources will be covered by the increase in performance and capacity.
He believes that a large number of new chip factories could lead to an oversupply of chips, and that could result in a major economic crisis.
Here is the quote from the Nvidia CEO. “Remember that architecture performance will improve, so you can’t rely on buying more computers. You should also assume that computers will become faster and therefore the total amount you will need will not be as large.”
He also says that we are beginning a new era where spending on Data Centers will skyrocket due to AI. Currently, there are about a trillion dollars worth of installed base data centers. And in the next four or five years, we’ll have two trillion worth of data centers that will power software worldwide.
The recent AI boom has made Nvidia one of the most promising companies in the world. Currently, Nvidia is worth around $1.7 Trillion and moved past Amazon and Google, thanks to its dominance of the AI chip market.
