Jensen Huang, the CEO of Nvidia, has refuted the claim that his corporation is fueling the AI bubble through investments in its customers. “That is false,” he told the “Handelsblatt”.
While Nvidia has invested $30 billion in OpenAI, Huang clarified that the company requires significantly more capital to support its computational capability, suggesting that Nvidia did not, in fact, finance the demand for services. Furthermore, regarding the struggling cloud provider Coreweave, Huang stated that he does not see a need for a rescue, adding that the business is “in good shape,” although the cost of securing working capital is increasing. The CEO asserted that the demand for Nvidia chips will outpace supply for “many years” to come.
Nvidia currently stands as the world’s most valuable company, valued at $5.2 trillion, but its business performance heavily depends on a limited number of large clients. During the second quarter of the fiscal year, which closed on July 26, the corporation generated 70% of its revenue from just its five largest customers.
The company is also cementing its role in the infrastructure side of AI, backing construction projects. Specifically, it is committed to OpenAI’s Ohio campus with an investment of up to $105 billion. Additionally, Nvidia holds guarantees worth $3.5 billion for various other data center operators, and its holdings in so-called “Neoclouds”-young providers of AI computing power-exceed $7 billion.
