'Warehouses Don't Make Much Money,' Jensen Huang Says — Nvidia Bets AI Factories Will Turn Computing Into Revenue

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Computing is moving from retention toward generation, Nvidia (NASDAQ:NVDA) CEO Jensen Huang said.

Computing systems are shifting from retrieval-based models to generative ones that nutrient outputs successful existent time, Huang said precocious connected the "Lex Fridman" podcast. "Warehouses don't marque overmuch money. Factories do," helium said.

For Huang, that displacement moves computing from storing accusation to generating output that tin nutrient revenue.

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"We were a pre-recording, quality pre-recording, and record retrieving system," Huang told podcast big Lex Fridman. Huang said computers were mostly built astir storing accusation successful beforehand and accessing it aboriginal erstwhile needed.

He said artificial quality changes that exemplary by generating responses alternatively of pulling chiefly from stored data. In Huang's view, that marks a displacement from retrieval-based computing to generative computing.

That transition, according to Huang, besides changes what computing requires: earlier systems needed a large woody of storage, portion generative AI needs acold much processing to continuously nutrient outputs.

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The outputs of these systems, known arsenic tokens, are becoming the halfway portion of value, Huang told Fridman, shifting however computing generates revenue. Those tokens correspond pieces of generated quality whose worth varies by usage from escaped to premium.

According to Huang, that saltation allows tokens to beryllium priced differently, making it imaginable to merchantability the output these systems produce. He said this is wherefore these systems are factories alternatively than retention systems.

The quality to nutrient much tokens comparative to the vigor utilized lowers costs portion expanding output, Huang said, making ratio central.

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He said this displacement is besides changing however computing is built, with systems present designed arsenic large-scale infrastructure combining compute, networking, retention and powerfulness to enactment procreation astatine standard alternatively than arsenic idiosyncratic chips.

"It's a factory, it's utilized for procreation of revenues," Huang said.

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