Nvidia CEO Expects AI Video to Create Yet More Demand for Computer Chips


The past 12 months have seen artificial intelligence computing company Nvidia go stratospheric as the generative AI boom saw it become one of the most valuable companies in the world. And CEO Jensen Huang says that shows no sign of abating thanks to the expected surge in AI video.

After Nvidia’s GH200 Grace Hopper super chip powered OpenAI’s recently released GPT-4o — a multimodal model that can interact in different mediums — CEO Jensen Huang expects AI-generated video to drive even more demand for the company’s chips.

“There’s a lot of information in life that has to be grounded by video, grounded by physics. So that’s the next big thing,” Huang tells Reuters.

“You’ve got 3D video and you’ve got a whole bunch of stuff you’re learning from. So those systems are going to be quite large.”

The AI-generated video boom is expected imminently. OpenAI has said it will release its video generator, Sora, in the coming months. While Meta and Google is also expected to release AI video platforms.

The AI boom has turbocharged chipmakers; Nvidia’s stock price stands above $1,000 at the time of writing. On Wednesday, the company based in Santa Clara, California upgraded its quarterly revenue estimates after a five-fold growth in sales at its data center unit in the first quarter of 2024.

In last year’s fourth-quarter financial report, NVIDIA recorded record quarterly revenue of $22.1 billion, up 22% from the third quarter and up an eye-watering 265% from the prior year.

The California company’s data center revenue in the fourth quarter was up 409% year-over-year, and full-year total revenue increased 126% to $60.9 billion.

“The demand is broad based and the large language models need to be increasingly multimodal, understanding not just video but also text, speech, 2D and 3D images,” Derren Nathan, the head of equity analysis at Hargreaves Lansdown, tells Reuters.

“It (video generation) is certainly one of the strong and already proven use cases for AI and it is extending beyond just content production.”

Outside of generative AI models for creatives and consumers, Tesla is a big customer of Nvidia’s. Elon Musk’s electric car company uses roughly 35,000 H100 GPU chips for its autonomous driving project.

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