(Bloomberg) – Nvidia Corp. Chief Executive Officer Jensen Huang said countries around the world looking to build and operate their own artificial intelligence infrastructure will drive demand for the company’s products.
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Countries including India, Japan, France and Canada are discussing the importance of investing in “sovereign AI capabilities,” Huang said in an interview on Bloomberg TV on Thursday. “Data, their natural resource, should be refined and produced for their countries. Recognition of the capabilities of sovereign AI is growing globally.”
At the time of the interview, Mr. Huang was in Canada. Canada is home to many academic institutions that have contributed significantly to the advancement of generative AI systems that power tools such as OpenAI’s popular ChatGPT. He said the country now has a growing need for supercomputers, which are needed to utilize the research results of academics.
Huang, co-founder of chip design company Nvidia, has been talking for months about the need for countries and their companies to locally store valuable data and the intelligence that can be extracted from it. Such a national approach to the AI boom will encourage data center expansion that requires Nvidia’s know-how and hardware.
The world’s most valuable chipmaker is estimated to have doubled its fiscal year revenue, driven by AI spending by its biggest customers, including Microsoft Corp., Metaplatforms Inc., Amazon.com Inc. and Alphabet Inc. There is. Mr. Huang is now hoping to expand his business. He strengthened his customer base by convincing companies and government agencies to build their own infrastructure.
“The bulk of the computing market is in the United States and to a much lesser extent in China,” he said. “Thanks to generative AI computer technology, it will literally impact every country for the first time. So some markets will be very large and global.”
NVIDIA, which has become Wall Street’s favorite bet on AI, has managed to beat analyst expectations in revenue over the past few quarters, and may need to find new markets to continue its streak. unknown. Other tech companies that have been part of the AI boom over the past year, such as chip-making rival Advanced Micro Devices Inc., released earnings and outlooks this quarter that disappointed investors.
Nvidia may prove to be an exception. The company is perhaps the only technology company to demonstrate significant revenue growth from AI, already transforming chip suppliers from niche players into the biggest beneficiaries of the AI boom. Analysts predict that surging demand for Nvidia’s products could make it the chip industry’s largest company by revenue as early as 2025.
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