Nvidia Corp's (NASDAQ: NVDA) CEO Jensen Huang, emphasized the importance of every country developing its artificial intelligence (AI) infrastructure to harness economic benefits and preserve cultural integrity during his speech at the World Government Summit in Dubai.
Huang highlighted that relying on external entities for AI development could be detrimental.
With Nvidia's valuation soaring to $1.73 trillion, thanks to its leading position in the high-end AI chip market, Huang credits the company's effort to making AI access more democratic through significant advancements in AI computing efficiency.
He encouraged countries to take the initiative in building their AI capabilities swiftly, Reuters reports. The stock is trading higher Monday premarket.
Huang also addressed the common fears associated with AI, arguing that they are exaggerated. He drew parallels with how new technologies and industries, like automobiles and aviation, have been successfully regulated in the past.
Huang criticized the fearmongering around AI, suggesting that it serves the interests of those who wish to monopolize the technology for themselves.
He urged against leaving AI development in the hands of a few and advocated for broader engagement and initiative.
Huang predicts that advances in computing technology will significantly reduce the costs associated with developing artificial intelligence, challenging the notion that $7 trillion, a figure reportedly sought by OpenAI CEO Sam Altman for semiconductor initiatives, is necessary.
Huang emphasized the rapid pace at which AI accelerators improve efficiency and performance, which are crucial for AI development.
This advancement, he argues, will diminish the overall need for such a hefty investment by making chips faster and more cost-effective, Bloomberg reports.
In response to the United States imposing restrictions on some Nvidia AI chips in October, Nvidia announced it was collaborating with customers in China and the Middle East to secure export licenses for new products in compliance with U.S. regulations.
However, Huang did not comment on this matter at the summit.
Huang anticipates a continued surge in AI-related expenditures, projecting the doubling of global data center costs for AI to $2 trillion within the next five years, signifying the dawn of a new era in software and AI capabilities.
Last week, reports indicated that Nvidia is expanding its reach by launching a new division focused on designing custom chips for cloud computing and other sectors, leveraging its dominance in the high-end AI chip market, where it holds an 80% share.
Nvidia's initiative to create custom AI chips positions it against competitors like Broadcom and Marvell Technology, aiming to capture a significant share of the burgeoning custom chip market, which is projected to double by 2025.
Nvidia will announce its fourth-quarter earnings on February 21.
Price Actions: NVDA shares traded higher by 1.11% at $729.36 premarket on the last check Monday.