NVIDIA CEO Optimistic That AI Segment Could Expand To $2 Trillion By The Next Five Years

NVIDIA's CEO recently made an appearance at the World Government Summit in Dubai, where he mentioned the importance of artificial intelligence for the future of global economics.

The current influence of AI in the markets is just the beginning, and humanity has a lot more to witness moving ahead, especially since technology has the power to bring a massive revolution in human lives. However, it is important to note that AI has a huge impact at a global level as well, and this fact is highlighted by NVIDIA's CEO Jensen Huang as well, who claims that it is vital for countries to build infrastructure that backs AI developments, as it won't take long before AI plays a huge role in setting the tone of national economics and developments.

The rest of it is really up to you to take initiative, activate your industry, build the infrastructure, as fast as you can.

There are some interests to scare people about this new technology, to mystify this technology, to encourage other people to not do anything about that technology and rely on them to do it. And I think that's a mistake.

Jensen Huang - NVIDIA CEO

Some might argue that this statement is solely for the firm's benefit, but I agree with Jensen here. The capabilities that AI has brought into the industry are just the beginning, and the "extent" of automation we have seen in such a confined period shows that the technology has huge potential. But this time, it has become necessary for global leaders to adopt a "sovereign AI infrastructure" since the technological race will be much faster, and it would have a huge influence on the development of nations. Moreover, Jensen has consoled those who claim AI isn't progressive for humanity, saying that it is designed in a way to co-exist with human actions, ultimately aiding them in it.

We are in the beginning of this new era and what's gonna happen is there's a trillion dollars worth of installed base in data centers around the world and over the course of next 4-5 years, we'll have 2 trillion dollars worth of data centers that will be powering software around the world and all of that is going to be accelerated and this architecture for accelerating computing is ideal for this next generation of software called generative AI.

Jensen Huang - NVIDIA CEO

Coming to the more juicy part, especially for NVIDIA as a business firm, Jensen says that "general purpose computing" isn't the way to lead in the case where we want fast, efficient, and cost-effective AI, and he described this by portraying the fact that accelerated computing, the one we see in modern times, has prompted the growth or even the advent of AI into the markets. He says that the only way the industry could transition into its "next-generation" state is by upscaling accelerated computing, with the need for huge economic resources and efficient hardware acting as the key weapons.

Did Jensen just double his prediction, now estimating that $2 trillion worth of data centers will be accelerated in the next 4 to 5 years, instead of the initial $1 trillion?

I guess @sama was right then. $NVDA pic.twitter.com/SRtWMQ28PI

— The AI Investor (@The_AI_Investor) February 12, 2024

Jensen says that the data center segment could expand up to a whopping $2 trillion by the next five years, ultimately fueling future AI applications, such as generative AI. The above figure isn't something ordinary but seems accomplishable considering how markets are actually proceeding. Another interesting fact here is that the "wildly ambitious efforts"  by OpenAI's CEO Sam Altman to raise $7 trillion for AI-focused chip fabrication make a lot more sense since this is just the beginning, and artificial intelligence will have much wider applications moving ahead, along with being an integral part of human life.

News Source: Reuters