For chip designer Nvidia, the boom in generative artificial intelligence has not yet delivered its full potential. After written content, voice interactions and videos will take over.
Having benefited from a surge in demand driven by Big Tech’s rush to chatbots, Nvidia now expects new AI models capable of creating videos and engaging in voice interactions of human type stimulate more commands for its graphics processors. “There’s a lot of information in life that needs to be video-based, physics-based. So this is the next big thing“, estimates the group’s CEO, Jensen Huang. “You have 3D video and you have a whole bunch of things to learn from. These systems will therefore be very bulky“.
Increased computing power
The need for greater computing power to train and operate advanced AI systems has driven demand for Nvidia’s Grace Hopper* chips, such as the H200, which was first used in the GPT- 4o from OpenAI – a multimodal model capable of realistic voice conversation with the ability to interact with text and image. Other Nvidia customers, including Google DeepMind and Meta Platforms, have also launched AI image or video generation platforms.
Explosive profits
The chipmaker forecast quarterly revenue well above estimates, after increasing sales at its data center unit more than five-fold during the first quarter. “The demand is very broad and large language models must be increasingly multimodal and include not only video, but also text, speech, 2D and 3D images.“, explained Derren Nathan, head of equity analysis at Hargreaves Lansdown.
AI models for video used in the automotive industry are also emerging as a major driver of demand for Nvidia chips. Tesla has expanded its pool of processors used in AI training to about 35,000 H100s in autonomous driving, Nvidia finance chief Colette Kress said in a phone call after the results were released. Wednesday.
Ms. Kress added that the automotive industry is expected to be the largest business vertical in Nvidia’s data center sector this year. “Video generation is certainly one of the strong and already proven use cases for AI and it extends beyond just content production” added Mr. Nathan.
Nvidia shares are expected to rise 7% on Wall Street at the opening, to a new all-time high close to USD 1,016. On this basis, its capitalization would reach $2,500 billion, the third largest in the world behind Microsoft ($3,200 billion) and Apple ($2,927 billion).
* The chip is named after an American computer scientist.
