Nvidia shares rise after CEO Huang says AI computing demand is up ‘substantially’
Nvidia CEO Jensen Huang said that the demand has increased this year because of the progress of artificial intelligence models from answering simple questions to complex reasoning.
Huang, CNBC’s “Squawk Box” program “this year, especially in the last six months, computer demand has increased significantly,” he said.
The CEO of the artificial intelligence chip leader answered the question about what investors asked the most. With Huang’s comment on the rise, Nvidia shares rose in pre -market transactions.
Huang said that artificial intelligence reasoning models use a mastered amount of information processing power, but they also see inspected amounts of demand because their results are very good.
“Artificial intelligence is as smart as everyone wants to use it,” CEO said. “We now have two exponential numbers that take place at the same time.”
“The demand for Blackwell is really very high,” he said for Nvidia’s most advanced GPU. “I think we are at the beginning of a new structure, a new industrial revolution.”
Nvidia announced last month that OpenAI will invest $ 100 billion in its huge data center structure. OpenAI plans to install 10 Gigawatt data centers using Nvidia chips.
The scale of the plans of the artificial intelligence industry increased doubts about whether leading companies can get the power to fuel their ambitions. On Gigawatt is equivalent to annual energy consumption of 8 million US households or the highest basic summer request of the New York City in 2024.
When asked who won the artificial intelligence race, Huang said that the United States is currently “not far ahead of China.” CEO said Beijing has created the power to support artificial intelligence much faster than the United States.
“China is very ahead of energy,” Huang said.
CEO said that the artificial intelligence industry would have to build new energy production from the electricity network in order to meet demand and protect consumers from increasing electrical prices. He said that data centers should be equipped with natural gas and then potentially with nuclear energy at some time in the future.
Huang said, “We should invest in every way to produce energy,” Huang said. “The power produced by the data center on its own can move much faster than putting it on the network, and we have to do it,” he said.
