According to CEO Jensen Huang, Nvidia is experiencing unprecedented demand for its computing power. For the last six months, this increase has been nothing short of extraordinary. In an appearance on CNBC’s “Squawk Box,” Huang highlighted the growing reliance on AI decision-making models. These models require a tremendous level of computing power to operate at peak performance. Add to that the astounding results produced by these AI models which have propelled a storm of demand. This excitement has underpinned an extraordinary boom and bubble.
Huang emphasized, “This year, particularly the last six months, demand of computing has gone up substantially.” The rising popularity of AI technologies has led to a situation where “the AIs are smart enough that everybody wants to use it,” he added. This shift has not only increased demand for Nvidia’s products but created a competitive landscape in the tech industry.
Tucked into this news was a big thing — OpenAI announced plans to build 10 gigawatts worth of data centers using Nvidia chips. This extremely ambitious project is a major step and commitment toward leap-frogging advanced AI capabilities. Let’s take this tricky new power requirement to the woodshed. Ten gigawatts is roughly the annual energy use of 8 million U.S. households, about equal to New York City’s projected peak baseline summer demand in 2024.
The desire for Nvidia’s Blackwell architecture is through the roof, indicative of the overall demand for the technology marketplace. Huang stated, “Demand for Blackwell is really, really high,” indicating that customers are eager to leverage this technology to enhance their AI applications.
Nvidia is riding two simultaneous waves of exponential growth, both of which are in their infancy. The need for computing power and the potential of AI models is increasing at an unprecedented rate. Yet today, Nvidia is currently at the cutting edge of the tech world. This combined momentum fuels progress in all sectors that use artificial intelligence.
As more and more companies are discovering what’s possible with AI, the company’s growing responsibilities as the gatekeeper of this critical computing resource are clear. The firm’s recent strategic re-focus is undoubtedly a reflection of this increasing demand. This decision will set an important precedent that will impact AI development and deployment in every industry.