NVIDIA’s Jensen Huang Responds to AI Chip Pricing Issue

At local time on the morning of March 19, NVIDIA CEO Jensen Huang was interviewed by global media. He told reporters that the global data center market is where NVIDIA’s market opportunities lie. At the same time, he responded to AI chip pricing, saying ‘just trying to give everyone a sense of pricing rather than specific quotes’.

Regarding the pricing of NVIDIA’s latest generation AI chip Blackwell, Jensen Huang responded: “I am just trying to give everyone a sense of the pricing of our products, and I do not intend to provide specific quotes. Because depending on each customer’s needs, there is a significant price difference for different systems. NVIDIA does not sell chips; we sell data centers.”

Jensen Huang stated that the global data center market reached around $250 billion last year and is growing at a rate of 20% to 25%, which presents an opportunity for NVIDIA. Due to the wide variety of chips and software produced, NVIDIA can generate significant revenue from global investments in data center equipment.

In addition, he also emphasized the importance of the Chinese market in the interview. Jensen Huang said: “We are doing our best to maximize NVIDIA’s business in China. We have launched L20 and H20 chips for the Chinese market, and these chips sold to China will meet requirements.” He also mentioned that a large number of components in NVIDIA’s chips are produced in China, and it is difficult to break the globalization of the supply chain.

NVIDIA officially released the AI accelerator card, Blackwell GB200, at the GTC 2024 developer conference and plans to ship it later this year. Jensen Huang stated that Blackwell’s AI performance can reach 20 petaflops, while H100 is only 4 petaflops. NVIDIA said that the additional processing power will enable artificial intelligence companies to train larger and more complex models.

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