NVIDIA CEO Jensen Huang: Predicts Technological Innovation Will Significantly Reduce AI Costs
NVIDIA CEO Jensen Huang stated that the advancement of computing technology in the coming years will significantly reduce the development cost of artificial intelligence, far below the $70 trillion raised by Ultraman Sam. Huang believes that with the improvement of chip manufacturing speed, better and more cost-effective chips will reduce the demand for research, development, facilities, and expert talent. However, he believes that the cost of data centers established worldwide to support artificial intelligence will double in the next five years. Nevertheless, Huang still believes that the growth in spending on artificial intelligence will continue.
Zhitong App has learned that NVIDIA CEO Jensen Huang predicts that the advancement of computing technology in the coming years will significantly reduce the development cost of artificial intelligence, far below the alleged $70 trillion that Sam Altman, CEO of OpenAI, is said to be raising.
Huang stated at the World Government Summit in Dubai on Monday, "You can't just assume that you're going to buy more computers. You also have to consider that computers are going to get faster, so you don't need as many."
The 60-year-old company leader's company manufactures the most sought-after AI accelerators, and he is confident that the chip industry will lower the cost of AI because these components are being "manufactured faster and faster."
According to a report in The Wall Street Journal, Sam Altman, CEO of OpenAI, is seeking to raise $70 trillion from investors in the Middle East, including the United Arab Emirates, for a semiconductor project aimed at powering AI projects that compete with NVIDIA.
It is understood that due to NVIDIA's undisputed leadership in AI training chips, its market value has swelled to over $1.7 trillion, and Huang's personal wealth has multiplied several times over.
In response, Altman and other AI developers are seeking to diversify their hardware choices, including exploring their own chip manufacturing businesses.
Among them, leading global contract chip manufacturers TSMC and Samsung Electronics commit to investing over $30 billion in capital expenditures each year to maintain their lead over potential competitors.
Furthermore, for Altman to have a chance at weakening their lead, he would need to invest heavily in research, development, facilities, and expert talent, but Huang believes that better and more cost-effective chips will make all of this unnecessary.
Nevertheless, NVIDIA's CEO does not believe that the growth in AI spending will end anytime soon. In his speech, Huang estimates that the cost of data centers worldwide built to support AI will double in the next five years.
He stated, "We are at the beginning of this new era. There are already about $1 trillion worth of data centers built globally. In the next four to five years, we will have $2 trillion worth of data centers that will support software operations worldwide."