Nvidia CEO says robotics is chipmaker’s greatest alternative after AI

Nvidia CEO Jensen Huang stated apart from synthetic intelligence, robotics represents the chipmaker’s greatest marketplace for potential development, and that self-driving automobiles can be the primary main business software for the know-how.

“We have now many development alternatives throughout our firm, with AI and robotics the 2 largest, representing a multitrillion-dollar development alternative,” Huang stated Wednesday at Nvidia’s annual shareholders assembly, in response to a query from an attendee.

Somewhat greater than a 12 months in the past, Nvidia modified the way in which it reported its enterprise models to group each its automotive and robotics divisions into the identical line merchandise. In Could, Nvidia stated the enterprise unit had $567 million in quarterly gross sales, or about 1% of the corporate’s whole income. Automotive and robotics was up 72% on an annual foundation.

Nvidia’s gross sales have been surging over the previous three years on account of unyielding demand for the corporate’s information middle graphics processing models, or GPUs, that are used to construct and function subtle AI functions akin to OpenAI’s ChatGPT. Whole gross sales have soared from about $27 billion in its fiscal 2023 to $130.5 billion final 12 months, and analysts predict almost $200 billion in gross sales this 12 months, in response to LSEG.

The inventory climbed to a document on Wednesday, lifting Nvidia’s market cap to about $3.75 trillion, placing it simply forward of Microsoft as essentially the most worthwhile firm on this planet.

Whereas robotics stays comparatively small for Nvidia in the intervening time, Huang stated functions would require the corporate’s information middle AI chips to coach the software program in addition to different chips put in in self-driving automobiles and robots.

Huang highlighted Nvidia’s Drive platform of chips, and software program for self-driving automobiles, which Mercedes-Benz is utilizing. He additionally stated the corporate lately launched AI fashions for humanoid robots known as Cosmos.

“We’re working in the direction of a day the place there shall be billions of robots, a whole lot of thousands and thousands of autonomous automobiles, and a whole lot of 1000’s of robotic factories that may be powered by Nvidia know-how,” Huang stated.

Nvidia has more and more been providing extra complementary know-how alongside its AI chips, together with software program, a cloud service and networking chips to tie AI accelerators collectively. Huang stated Nvidia’s model is evolving, and that it is higher described as an “AI infrastructure” or “computing platform” supplier.

“We stopped considering of ourselves as a chip firm way back,” Huang stated.

On the annual assembly, shareholders accredited the corporate’s govt compensation plan and reelected all 13 board members. Outdoors shareholder proposals to provide a extra detailed range report and alter shareholder assembly process didn’t cross.