- Nvidia capitalizes on the AI boom, driven by ChatGPT’s popularity.
- The company sees remarkable profits from GPU sales for generative AI.
- Nvidia predicts AI industry to exceed $600 billion.
American hardware manufacturer Nvidia has been capitalizing on the AI craze ever since the rise in popularity of ChatGPT.
The company has seen remarkable profits this year by selling GPUs that power generative AI models. Now, Nvidia anticipates that the AI industry will surpass the $600 billion milestone.
This projection comes from Manuvir Das, Nvidia’s Head of Enterprise Computing, who disclosed the company’s AI industry forecast during a presentation at the Goldman Sachs Communacopia and Tech Conference.
Das envisions substantial, exponential growth for Nvidia, driven by the escalating competition among tech giants in the field of generative AI.
According to Das, the chip segment within the AI industry may potentially reach a valuation of up to $300 billion in the future.
Additionally, the applications in GenAI and the omniverse enterprise could contribute another $300 billion to this valuation.
He further emphasized that despite the recent significant growth in the AI industry, there are still vast opportunities on the horizon.
More and more functions of companies are being done in computing. That means you need more and more computing in the world, which means you need more data centers. You need more energy. You need more horsepower, and it’s just not sustainable.
Nvidia’s predictions align with current industry trends that indicate substantial growth on the horizon. A clear example is the remarkable revenue increase observed in Nvidia’s data center division during FY23, pushing the company closer to a trillion-dollar valuation.
It’s important to acknowledge that such transformations don’t occur suddenly. While it won’t happen overnight, it’s reasonable to assume that Nvidia’s outlined projections could materialize over a decade, especially considering that the industry has not yet reached its zenith.
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