- Nvidia CEO Jensen Huang doubts OpenAI needs $7 trillion for AI chips.
- He believes technological advances will reduce infrastructure costs.
- Nvidia plans a new division targeting advanced AI accelerators.
Nvidia CEO doubts OpenAI claim
Nvidia CEO Jensen Huang recently questioned OpenAI CEO Sam Altman’s reported efforts to raise up to $7 trillion towards boosting global chip supplies for artificial intelligence.
Speaking at the World Government Summit, Huang suggested Altman’s lofty fundraising target assumes linear computing cost growth that fails to account for expected technological advances.
“You can’t assume just that you will buy more computers,” Huang stated, arguing that computers will also become much faster over time, reducing overall infrastructure needs versus simple extrapolation.
Skepticism on $7T chip boost
The Nvidia chief projected that $2 trillion total would sufficiently power essential AI data centers globally through 2029.
Huang’s skeptical remarks follow reports by The Wall Street Journal that Altman has held talks with investors, including the UAE government, for trillions in financing to scale up semiconductor production dramatically.
While acknowledging the importance of chips, Huang believes developing capable AI systems can happen at a fraction of Altman’s quoted costs.
Nvidia plans new chip division
As a dominant provider of data center AI accelerators already engaged with OpenAI, Microsoft, Google, and others on custom designs, Nvidia feels well-positioned to meet market chip demand.
With a market cap approaching $1.8 trillion, Nvidia now plans a dedicated division focusing on advanced cloud and AI chips to maintain its industry leadership.
