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NVIDIA CEO Jensen Huang believes that while his firm's AI chips might be expensive, they allow users to save money by saving time and also generate tokens that can be monetized. Huang made the remarks in an interview given to CNBC earlier today after he unveiled new GPUs and products at the firm's GTC conference yesterday. His firm bled billions of dollars in value in January during the DeepSeek selloff as investors fled the stock on worries of lower demand for NVIDIA's AI GPUs.
Jensen Huang Believes All Companies Are Building AI Into Their Systems
When asked by CNBC's Jim Cramer how AI has evolved over a year, Huang outlined that "In one year, we made AI better. It's smarter now; it can reason. We made AI more useful. Just about every industry and every company." He believes that not only are companies "building AI into their systems," but more energy and investment are available for building AI infrastructure.
NVIDIA bled nearly $600 billion in market value during the DeepSeek selloff in January. Investors shunned the shares after China's DeepSeek demonstrated that it was possible to train and develop leading AI models at a fraction of the cost of its Western counterparts. DeepSeek's products also brought the high prices of NVIDIA's products into the limelight, with investors worrying that the price, along with DeepSeek's efficiency demonstrations, would reduce the demand for NVIDIA's AI GPUs.
In response, Huang admitted "these processors and these computers are quite expensive," adding that they're "quite expensive to make." He explained that the reason why his GPUs are expensive are because they are the largest chips and the most complex computers in the world.
However, he believes that the GPUs save "you a mountain of money. . .because the amount it takes, the amount of time it saves you. . .the processing time it reduces is incredible." The NVIDIA CEO added that the product also generates monetizable tokens. Consequently, he believes the "amount of money it helps you make is incredible."
As for AI, it is the "foundation, the operating system of every single industry going forward," he believes. The reason behind the foundational aspect is "everything that we do in life is underpinned by intelligence."
NVIDIA builds "the infrastructure for manufacturing digital intelligence," he shared, and added that the firm's silicon photonics can connect millions of GPUs together to create the "factory of the future."
Huang also shared that NVIDIA is working with TSMC and Foxconn, among others, to bring manufacturing onshore. As for whether US chip restrictions against most countries in the world will affect his firm, he pointed out that "there are companies from all over the world. AI's gone mainstream. AI isn't some magical technology. It's incredible technology. But it's used for everything. It's used for healthcare and education and agriculture." As per Huang, the near-term impact of tariffs will "not be meaningful " on his firm.
AI advances have also enabled robotics, believes the NVIDIA CEO. The "technology finally arrived where we could create the AIs, we build em in the data centers," he shared. Once the data center training is complete, "you move the AI brain if you will, download it digitally into the physical robot," he added.
"Robotics and robotics industries, general robotics and other forms of robots, is going to be one of the largest AI infrastructure opportunities for us," according to Huang.
