Nvidia’s CEO sees $1T data centers getting accelerated due to advent of gen AI

Nvidia’s (NASDAQ:NVDA) CEO Jensen Huang said that trillion dollars worth of general purpose datacenters are going to get modernized into accelerated computing. “That’s going to happen no matter what,” Huang noted while discussing the data center market.

Huang, who is also Founder and President of Nvidia, was speaking at the Goldman Sachs Communacopia + Technology Conference on Wednesday and responded to questions on data center markets, and AI growth among other things.

Huang said, “we are now in this computer revolution, now what’s amazing is, so the first trillion dollar of data centers is going to get accelerated, in the advent of this new type of software called generative AI. Because generative AI is not just a tool, it is a skill… this is why a new industry has been created.”

Huang noted that’s why people think AI will expand beyond $1T of data center and IT and into the world of skills — such as digital assembly line worker (a robot), a digital customer service (chatbot).

Huang added that “densification” of computers will happen. Nvidia wants large data centers to be compressed into a small area, as the ones spread across a large are not very efficient.

Discussing the company’s new Blackwell chip system and pace of innovation, Huang said that “we have 7 different chips and they all contribute to the performance, so we could innovate and bring a new AI cluster, a super cluster to the market every single year that is better than the last generation because we have so many pieces to work around.”

On Blackwell’s delivery, Huang said that Blackwell is in full production and the company would ship in Q4, and start scaling in Q4 and next year. “The demand on it is so great, and everybody want’s to be first, everybody wants to be most,” Huang commented.

Separately, Huang said that productivity gains from AI are incredible.

Speaking on the use of AI in Nvidia itself, Huang stated that “there is not one software engineer in our company today who doesn’t use code generators.” He added that “the days of every line of code being written by software engineers are completely over.”

Huang noted that the idea is that each software engineer of the company would have companion digital engineers working with them 24×7 in the future.

The Nvidia chief also tried to calm fears related to supply chains from Asia, mainly Taiwan.

Huang said that the company tries to design diversity redundancy into every aspect it can. He added, “to have enough intellectual property in our company, in the event that we have to shift from one fab to another, we have the ability to do it. Maybe the process technology is not as great, maybe we will not be able to get the same level of performance or cost but we will be able to provide the supply.”