Advances in technology will reduce the cost of artificial intelligence

Jensen Huang, the CEO of Nvidia, predicts that technological advances will reduce the cost of AI development in the next few years; Therefore, the costs of developing artificial intelligence will be much lower than the amount that “Sam Altman” seeks to raise through investors to produce an AI chip.

According to Bloomberg, Huang noted at the World Government Summit in Dubai on Monday, February 12, 2024:

“Companies can't just think about buying more computers; Rather, they should remember that computers are getting faster day by day, and therefore huge investment in the artificial intelligence industry will not be needed.”

Nvidia makes the loudest AI accelerators, and Huang is confident that the chip industry will drive down the cost of AI because these parts are being developed and produced “rapidly.”

Nvidia vs. OpenAI

The 60-year-old executive director of Nvidia indirectly considered Sam Altman's efforts to find investors futile. It was recently reported that Sam Altman, the CEO of OpenAI, is looking for UAE investors to invest $7 trillion in the field of artificial intelligence chip manufacturing. This is a huge investment to fund projects that can compete with Nvidia.

Due to Nvidia's unrivaled leadership in the artificial intelligence chip market, the company's market value has increased to more than $1.7 trillion, and Huang's personal wealth has multiplied. Altman and other AI developers are looking to increase the diversity of their hardware by attracting investors to produce proprietary chips.

The world's leading chip manufacturers, such as TSMC and Samsung, spend more than $30 billion each year on capital expenditures to keep up with competitors. For Altman to have any real chance of success in this field, it must quickly invest in research, development, facility expansion, and manpower. But Huang's view suggests that producing better, lower-cost chips will make this unnecessary.

However, according to the CEO of Nvidia, the costs related to artificial intelligence will not decrease anytime soon. Huang estimated that the global cost of data centers that power AI processing will double over the next five years. He says: “We are at the beginning of a new era. The value of data centers is about 1 trillion dollars; “So over the next four or five years, they're going to be worth two trillion dollars, and they're going to have to power a wide variety of software around the world.”