Is investing in AI companies to boost revenue? Jen-Hsun Huang responds to criticism

Abstract:

According to CNBC,

Nvidia CEO Jensen Huang on Wednesday defended the company’s continued financing of the AI ​​craze and rebutted outside criticism.

Nvidia has accumulated a lot of cash due to the AI boom, thanks to its position as the leading manufacturer of AI chips. These chips are necessary to run the large language models behind OpenAI’s ChatGPT and other similar applications. Nvidia has used these funds to invest in various companies in the AI ecosystem, from AI model developers such as OpenAI and Anthropic, to providing customers with A new cloud service provider that rents out NVIDIA chip computing power.

Huang Renxun said that these investment arrangements reflect the unprecedented scale of capital required to build cutting-edge AI companies. He said that NVIDIA hopes to both invest in these leading AI companies and provide them with broader support when necessary.

“There are several companies, these cutting-edge AI laboratories, that are once-in-a-lifetime companies, and we hope to become their investors. We want to support them and be their partners. Of course, we also very much hope that they can build their own ecosystem on top of our platform and then expand their business scale with us. Therefore, investing in these companies in their early stages of development is a very good opportunity. " Jen-Hsun Huang said.

Huang Jen-Hsun also refuted outside concerns that if one of these companies gets into trouble, NVIDIA may be forced to bear losses. He said,

NVIDIA's computing infrastructure can be redeployed based on the needs of different customers and workloads, thereby limiting NVIDIA's risk exposure to any single investment project.

He added: "The money we invest will bring huge returns. I think the risk is low. ”