Nvidia's Huang: demand went "from very high to higher than that"

Investing.com -- Nvidia CEO Jensen Huang on Wednesday said that a $100 billion investment in OpenAI is "not in the cards," reflected on "higher than very high" demand for the company's products, and shared his vision that compute will equal revenue for every firm in the world in the near future.

Speaking at the Morgan Stanley Technology, Media and Telecom conference, Huang said that Nvidia has completed a $30 billion investment in OpenAI, which he described as potentially the last chance to invest in a company of this significance. He added that the previously touted $100 billion deal was not possible, as the artificial intelligence company is gearing up for an IPO later this year.

The chipmaker's $10 billion investment in Anthropic, another AI giant, will likely be "the last one" in the company, Huang added.

Speaking more broadly about the company's direction, Huang said that Nvidia has been expanding OpenAI's capacity across multiple cloud platforms, including Microsoft Azure, Oracle Cloud Infrastructure, and Amazon Web Services. It is also ramping up AWS operations rapidly and expanding Anthropic's capacity on AWS and Azure.

Huang described the demand profile as moving from very high to even higher than that, and said that Nvidia is well-positioned at the frontier of physical AI and digital biology AI.

Nvidia's head also emphasized that the company has secured its supply chain, including memories, wafers, CoWos, packaging, connectors, cables, copper to multi-layer ceramic capacitors. "When Satya (Nadella, CEO of Microsoft) asks me to stand up a few gigawatts, the answer is no problem," Huang said, underscoring Nvidia's ability to scale quickly.

Commenting on how he sees the AI economy evolve, Huang stated that "compute equals revenues," emphasizing that every company will need compute, and compute will equal GDP. He predicted that there will be no shortage of intelligence, just the need to have enough compute to execute.

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