AI chips don’t need trillion-dollar investments: Nvidia CEO

According to Nvidia CEO Jensen Huang, the ever-increasing speed and efficiency of processors mean that OpenAI’s Sam Altman won’t need $7 trillion for his AI chip initiative.

“You can’t assume that you will buy more computers. You have to also assume that the computers are going to become faster and therefore the total amount that you need is not as much,” Huang said on stage at the World Governments’ Summit in Dubai.

“If you just assume computers aren’t going to get any faster,” Huang continued, “you might come to the conclusion that we need 14 planets, three galaxies and four more suns to fuel all this, but computer architecture continues to advance.”

The global semiconductor market will hit $1 trillion by 2023, up from $556 billion in 2021, according to Digitimes Research. Digitimes expects servers and AI as major growth drivers for the industry – but not to the tune of $7 trillion – because of a projected saturation in the PC and notebook space.

But even these numbers from Digitimes might need to be refreshed, with Huang saying on stage that Nvidia will have a $2 trillion install base by the end of the decade. 

“There’s currently about a trillion dollars’ worth of install base of data centers. Over the course of the next four or five years, we’ll have $2 trillion worth of data centers that will be powering software around the world,” Huang said.

Copyright © 2024 IDG Communications, Inc.

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