The concept of “AI factories” taking over the world may sound like a plot from a science fiction novel, but NVIDIA’s CEO Jensen Huang believes it will very much be a reality. Huang, often referred to as the “Godfather of GPU,” predicts that these AI factories will permeate every industry, company, and region, heralding a new era of technological dominance.
Nvidia Corp.’s CEO Huang exuded confidence in the swift adoption of AI applications and accelerated computing. With the company’s staggering 70% market share of AI chips worldwide, Huang is bullish about the far-reaching impact of this rapidly advancing technology on various sectors.
Moreover, Nvidia is steering towards developing what it touts as the “operating system of AI.” Huang anticipates that this endeavor could burgeon into a “very significant” business, especially after the company’s software services segment achieved a remarkable $1 billion in annualized revenue run rate in the fourth quarter.
Nvidia’s fourth-quarter revenue stood at $22.1 billion, surpassing Street expectations of $20.62 billion, marking an impressive performance in a challenging market environment.
But what exactly does Huang mean by AI factories? According to him, Nvidia’s AI chips have sparked the emergence of an entirely new industry. He describes it as a process where raw data is transformed into immensely valuable tokens by AI supercomputers produced by Nvidia.
These tokens are then leveraged by AI chatbots like OpenAI’s ChatGPT and Midjourney. Huang expounds that these “valuable tokens” are generated in specialized data centers—dubbed AI supercomputers and AI generation factories. These factories signify a paradigm shift, where data assumes the role of raw material for this new industrial landscape.
Huang’s vision of AI factories already materializing heralds an unprecedented wave of opportunities. Nvidia’s dominant position boasting a 70% hold on the AI chips market places the company in a prime position to power what Huang terms as the next “industrial revolution.”
Simultaneously, Huang has been advocating for “Sovereign AI,” encouraging nations to invest in and cultivate their own AI capacities to safeguard their data sovereignty.
NVDA Price Action: Nvidia’s stock soared to $735.94, marking a remarkable 9.07% surge in the last 24 hours. This surge is within a 52-week range of $204 to $746, showcasing the company’s robust market performance.