As a chip giant and the world's most valuable company, Nvidia reported another record-breaking quarterly profit in its latest quarter on Wednesday, as demand for AI computing power continues to soar. "The global demand for tokens is completely exponential," CEO Jen-Hsun Huang said on a conference call with analysts after the earnings release. "I think we're all seeing this, even in the cloud our six-year-old GPUs are completely exhausted and prices are going up."
The company’s latest quarterly revenue reached$68 billion, a year-on-year increase of 73%, of which$62 billionFrom the data center business.
It’s worth noting that Nvidia breaks down data center revenue into:$51 billion in computing revenue (mainly GPUs)and$11 billion in network product revenue (e.g. NVLink). The company’s annual revenue reached$215 billion.
As in previous quarters, Nvidia has yet to record any revenue from chip exports to China, despite the recent relaxation of export restrictions by the U.S. government.
"Although the U.S. government has approved a small number of H200 products for Chinese customers, no revenue has yet been generated." Chief Financial Officer Colette Kress said.
During the investor call, Huang also discussed the company's proposed investment in OpenAI, which is reported to be worth $30 billion.
"We are still advancing the cooperation agreement with OpenAI and believe it is close to being reached." Huang Renxun said. He also mentioned collaborations with Anthropic, Meta and Elon Musk’s xAI. However, Nvidia’s filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday emphasized that,There is no guarantee that this investment will ultimately be completed.
Huang also responded to outside concerns about the sustainability of capital expenditures by technology companies, saying he believed that computing power investments would soon be converted into revenue.
“In the new era of AI, computing power is income. Without computing power, Token cannot be generated; without Token, revenue growth cannot be achieved.”
“We have reached an inflection point and are generating valuable tokens that can both create productivity for customers and bring profits to cloud service providers.”