Nvidia CEO says technological advances keep AI cost under control

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Nvidia Corp. Chief Executive Officer Jensen Huang predicts advances in computing in the next few years, the cost of developing artificial intelligence will be less than the $7 trillion that Sam Altman's fundraising says.

“You can't just assume you're going to buy more computers. You have to assume that computers are going to get faster, so the amount you need is not that much,” Huang said Monday at the World Government Conference in Dubai. Because those parts are made “faster and faster and faster.”

Huang was responding to a report in the Wall Street Journal that OpenAI CEO Sam Altman is seeking to raise $7 trillion from investors in the Middle East, including the United Arab Emirates, for a semiconductor initiative that could power AI projects that rival Nvidia.

Thanks to its undisputed leadership in AI-training chips, Nvidia's market value has grown to more than $1.7 trillion and Huang's personal wealth has multiplied. Altman and other AI developers are looking for ways to diversify their hardware options, including exploring their own chipmaking ventures.

The world's leading contract chipmakers, Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., which spend more than $30 billion each year in capital spending to stay ahead of potential rivals. For Altman to have a realistic chance at their lead, he'll have to spend lavishly on research, development, facilities and expert staff, but better, more expensive chips make that unnecessary, according to Huang.

However, the Nvidia CEO doesn't see an end to the rise in AI spending anytime soon. In his remarks, Huang predicted that global spending on AI-powered data centers will double in the next five years.

“We're at the beginning of this new era. We have an installed base of data centers worth about a trillion dollars. In the next four or five years, we'll have $2 trillion worth of data centers powering software around the world,” he said.

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