During NVIDIA’s latest quarterly earnings report, there was an additional issue raised by CEO Jensen Huang and CFO Colette Kress. Investors may be wondering if the demand for AI chips is still on the rise. Kress mentioned that the orders for the Blackwell GPU have been growing, generating $11 billion in revenue in the previous quarter out of a total of $39 billion. It is the fastest-growing product in the company’s history. The current orders for Blackwell are still increasing.
The popular question now is whether tech companies developing AI still need to purchase additional AI chips, considering the abundance of options available. NVIDIA’s response remains consistent, stating that older chips are utilized for data training, while Blackwell plays a crucial role in AI software inference tasks.
Another trend that suggests the demand for AI chips is not diminishing is the increasing complexity of AI model development, which requires significantly more processing resources than before, up to 100 times more than existing models for rapid responses.
In conclusion, Jensen Huang addressed concerns about other tech companies independently designing their own AI chips impacting NVIDIA. He noted that designing chips does not equate to easy and efficient usage.
TLDR: NVIDIA reports growing orders for AI chips, emphasizing the importance of specialized chips for specific AI tasks and the continuous demand due to increasingly complex AI model development.
Leave a Comment