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Sam Altman's $7 trillion chip dreams are way off the mark, says Nvidia CEO Jensen Huang

Feb 13, 2024 - businessinsider.com
Nvidia CEO Jensen Huang has criticized OpenAI chief Sam Altman's reported plan to raise up to $7 trillion to increase the supply of GPU chips needed for AI processing. Speaking at the World Governments Summit in Dubai, Huang argued that the cost of developing AI and building global AI data centers would be significantly less due to expected advances in computing. He estimated the cost of building AI data centers globally would amount to $2 trillion by 2029.

Huang's comments follow reports that Altman is seeking to raise funds to address the global chip shortage, with potential investors including the UAE government. Nvidia, which has a dominant position in the AI chip market and is worth almost $1.8 trillion, has reportedly held talks with companies including OpenAI, Microsoft, Google, and Meta to develop custom chips for data centers. The company is planning to create a new division to design data center chips and AI processors for cloud computing firms.

Key takeaways:

  • Nvidia CEO, Jensen Huang, indirectly criticized OpenAI chief, Sam Altman, for his plan to raise trillions to increase the supply of GPU chips needed for AI processing.
  • Huang stated that developing AI wouldn't cost as much as Altman is seeking to raise, arguing that advances in computing would reduce infrastructure costs.
  • He estimated that the cost of building AI data centers globally would amount to $2 trillion by 2029.
  • Nvidia, which already has a dominant position in the AI chip market, is planning to create a new division to design data center chips and AI processors for cloud computing firms.
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