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Nvidia chips to see increased demand due to AI-Generated videos: CEO Jensen Huang

in Technology, world
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Nvidia chips to see increased demand due to AI-Generated videos: CEO Jensen Huang
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Anindita Nayak

Bhubaneswar, May 24

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AI-generated videos are likely to boost demand for chips, supplementing the growth of chip giant Nvidia.

Following the increased demand for chips on the back of big technology firms’ launch of chatbots, Nvidia now anticipates that new AI models, which can create videos and mimic human speech, will lead to even more orders for its graphics processors.

“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,” said Jensen Huang, CEO of Nvidia has said post announcement of its first quarter results. “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.” Huang added.

The growing demand for computing power to train and operate advanced AI systems has boosted interest in Nvidia’s Grace Hopper chips, like the H200. This chip was first utilized in OpenAI’s GPT-4o, a multimodal model capable of realistic voice conversations and interacting with both text and images.

Nvidia’s other clients, such as Google DeepMind and Meta Platforms, have also launched AI platforms for generating images or videos. AI models for video in the automotive industry are also becoming a major source of demand for Nvidia chips.

“Tesla has expanded its cluster of processors used in AI training to about 35,000 H100s as it chases autonomous driving,” said Nvidia’s Chief Finance Officer, Colette Kress on a post-earnings call. “The automotive industry was expected to be the largest enterprise vertical in Nvidia’s data center business this year,” Kress added.

On Wednesday, Nvidia overshot Wall Street estimates as its profit skyrocketed, bolstered by its chipmaking dominance. Its net income rose more than sevenfold compared to a year earlier, jumping to $14.88 billion in its first quarter that ended April 28. Revenue more than tripled, rising to $26.04 billion from $7.19 billion in the previous year.

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