Nvidia CEO Jensen Huang Thinks Even Free AI Chips From Rivals Are 'Not Cheap Enough' Compared To Its GPUs

by Rounak Jain Benzinga Editor

Zinger Key Points

Nvidia CEO Jensen Huang believes the company’s AI technology is so advanced, chips from rivals would prove costly even for free.
Huang also believes despite Nvidia’s dominance, it faces the most competition compared to “anyone on the planet.”
Discover Fast-Growing Stocks Every Month

In a bold assertion of technological dominance in the AI industry, Nvidia CEO Jensen Huang said that their GPUs remain unrivaled in the AI space, even against freely offered competitor AI chips.

What Happened: Huang made bold claims about the superiority of their GPUs over any competitor’s AI chips, even if they were given away for free.

During a recent event at the Stanford Institute for Economic Policy Research, Huang argued that the pricing of Nvidia's GPUs is not a significant factor in the total cost of ownership (TCO) for AI data centers.

Huang said Nvidia's AI chips are "so good that even when the competitor’s chips are free, it’s not cheap enough." He went on to add that despite the company's leadership in AI chips, it faces more intense competition "than anyone on the planet."

He revealed that Nvidia assists customers in designing alternative AI processors and shares its product roadmap with them, positioning the company as an open collaborator in the industry.

Huang also responded to skepticism regarding Nvidia’s business practices, amidst accusations of operating a GPU cartel. He countered these claims by detailing Nvidia’s unique selling points, such as the programmability of their GPUs and their widespread adoption across cloud computing companies.

Why It Matters: Earlier statements from Huang have emphasized Nvidia’s growing influence in the AI sector. In February, he predicted that every enterprise on the planet would eventually operate on Nvidia’s AI ‘operating system,’ citing the company’s $1 billion annualized revenue run rate in its software and services segment.

Moreover, Huang’s vision of "AI factories" taking over the world aligns with Nvidia's commanding 70% market share in AI chips. His belief in the "operating system of AI" becoming a significant business venture is backed by the company’s successful software services growth.

Additionally, Huang has been an advocate for nations to develop their own "Sovereign AI." He urged countries to invest in AI to maintain control over their data, predicting that data center spending could reach $2 trillion by 2029.