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LIZ: THE WORLD'S MOST VALUABLE COMPANY IS ON A TEAR THIS YEAR. SHARES OF NVIDIA HAVE SOARED 199% AND ACCOUNT FOR 22% OF THE S&P'S GAINS THIS YEAR. THE TECH TAKE NAPS SHARE PRICE HAS BEEN AT A RECORD, THEN DIPPING IN THE RED AND THEN UP AS INVESTORS PARSE THROUGH THE THIRD QUARTER EARNINGS REPORT. BUT THE COMPANY'S REVENUES DO NOT LIE; NVIDIA SALES HAVE INCREASED EVERY QUARTER, AND EVERY QUARTER THE COMPANY HAS BEATEN ANALYST ESTIMATES. WHAT DOES THE FUTURE LOOK LIKE FOR THE COMPANY, AND MORE IMPORTANTLY, HOW IS AI GOING TO CHANGE THE WAY ALL OF US DO OUR JOBS? WE TALKED ABOUT ALL OF IT: AI, AND HOW IT IS SHAPING THE INDUSTRIAL REVOLUTION. JOINING US NOW IN A FOX BUSINESS EXCLUSIVE IS JENSEN WONG. THANKS FOR JOINING US.
>> NICE TO SEE YOU, GREAT TO BE HERE.
LIZ: THE SUPERLATIVES TO DESCRIBE EARNINGS AND YOUR OUTLOOK RANGED FROM FULL STEAM, FULL THROTTLE, INCREDIBLE. BUT THE HEADLINE EMERGES THAT YOU HAVE A HEADLINE MOST CEOs WOULD LOVE TO HAVE: DEMAND FOR TWO OF YOUR PRODUCTS, ORDERS FOR YOUR BLACKWELL CHIPS, FAR EXCEED THE SUPPLY YOU HAVE. WHAT'S THE MOST IMPORTANT STEP YOU ARE TAKING TO SPEED UP THE PROCESS TO FILL THESE ORDERS?
>> I APPRECIATE THAT. HOPPER AND BLACKWELL ARE TWO MAGNIFICENT COMPUTING SYSTEMS. THESE TWO SYSTEMS REINVENTED COMPUTING ALTOGETHER, FROM SOFTWARE WRITTEN BY HUMANS ON CPUs TO MACHINE LEARNING, CREATING THESE NETWORKS THAT MAKE POSSIBLE ARTIFICIAL INTELLIGENCE RUNNING ON GPUs. AS THE WORLD MODERNIZES THE DATA CENTERS—ONE TRILLION DOLLARS OF DATA CENTERS AROUND THE WORLD—THE DEMAND IS INCREDIBLE. WE ARE RAMPING BOTH OF THESE PLATFORMS INCREDIBLY HARD. WE HAD A RECORD QUARTER, AND NEXT QUARTER, WE'LL GO FROM $0 BILLION OF BLACKWELL TO MANY MILLIONS OF DOLLARS OF BLACKWELL, SO IT IS GOING TO BE AN INCREDIBLE THING, BUT DEMAND IS INCREDIBLE.
LIZ: HOW BIG IS THE BACKLOG FOR THE HOPPER AND BLACKWELL SYSTEM? THE SUCCESSOR—ARE YOU SEEING ANY CUSTOMER BEHAVIORS THAT SAYS WE WILL WAIT FOR THE NEWER BLACKWELL MODEL?
>> PEOPLE ARE MODERNIZING DATA CENTERS. THEY NEED TO GET GOING. WHAT I ADVISE PEOPLE TO DO, THEY ARE DOING THAT. WE ARE GOING TO CREATE NEW SYSTEMS EVERY YEAR; THERE WILL BE SOMETHING YOU CAN PURCHASE NEXT YEAR AND THEN COST AVERAGE YOUR WAY THROUGH. THE REASON IT IS COST AVERAGING IS THAT IF WE INCREASE PERFORMANCE EVERY YEAR, WE EFFECTIVELY ARE REDUCING COST FOR ANY AMOUNT OF COMPUTATION YOU WANT INSTEAD OF THE CLASSICAL DATA CENTERS. SEVERAL HUNDRED BILLION DOLLARS WILL GO INTO MACHINE LEARNING AND AI SYSTEMS. WE HAVE HUNDREDS OF MILLIONS OF DOLLARS THAT WE WILL INVEST IN THE NEXT SEVERAL YEARS.
LIZ: FOR ALL THESE COMPANIES, WHETHER THEY ARE TECH OR BASIC ENTERPRISE SPENDING ON AI, $350 BILLION. THE 800-POUND GORILLAS IN THE AI SPACE WHO ARE DESPERATE FOR YOUR CHIPS—META, GOOGLE, MICROSOFT—I WOULD LOVE TO KNOW HOW ORDERS ARE FILLED. WHO GETS PREFERENCE? DOES IT GO BY WHO ORDERED FIRST OR THE SIZE OF THE CUSTOMER?
>> IF YOU DON'T PLACE AN ORDER, IT IS HARD TO FULFILL THAT. MOST HAVE PLACED ORDERS. WE TRY TO BE FAIR WITH EVERYONE SO THEY CAN ALL GET THEIR AI INFRASTRUCTURE UP AND RUNNING AND MAKE SURE THEIR INFRASTRUCTURE IS READY. BETWEEN US AND THEM, THERE'S NO SENSE IN SHIPPING COMPUTERS IF THE DATA CENTER AND POWER AND READINESS OF THE SYSTEM IS NOT THERE. WE WORK WITH ALL OUR HYPERSCALERS, AND AT THIS POINT, EVERYBODY HAS STOOD IN THE BLACKWELL SYSTEMS. OCI HAS SHOWN PICTURES OF IT, GOOGLE HAS SHOWN PICTURES OF IT. I THINK IT WAS LAST NIGHT. SAUDIA ANNOUNCED THEY WILL HAVE PREVIEWS FOR THEIR CUSTOMERS PRETTY SOON, AND THEY'VE GOT THEIR SYSTEM UP AND RUNNING. EVERYONE IS PROUD OF THE SYSTEM, AND WE ARE RACING TO GET THERE.
LIZ: WE ARE TALKING HUNDREDS OF THOUSANDS OF PEOPLE DYING TO GET THEIR HANDS ON THEM. CAN I GET CLARITY ON THE QUESTION OF THE OVERHEATING? THERE WAS A REPORT THAT SAID SOME OF THESE WERE OVERHEATING. IF IT IS TRUE, IS IT A RACK PROBLEM?
>> IT IS PROBABLY SOMEBODY DOING ENGINEERING INTEGRATING SYSTEMS. IN THE BEGINNING, THERE ARE ALL KINDS OF ISSUES. WE ARE JUST DOING ENGINEERING. WE KNOW HOW THE BLACKWELL SYSTEMS WORK AND ALL THE TECHNOLOGY WORKS BECAUSE FOUR OF THEM ARE STANDING UP. A LOT OF THEM ARE WORKING IN OUR COUNTRY AND WITHIN CUSTOMERS' COMPANIES. WE ARE IN GOOD SHAPE WITH GREAT BLACKWELL PRODUCTION, BUT WE HAVE THOUSANDS OF ENGINEERS DOING THINGS, SO I AM NOT SURE WHAT THEY HEARD, BUT IT'S A NON-ISSUE.
LIZ: IT IS A LONG WAY FROM 32 YEARS AGO WHEN YOU FOUNDED THE COMPANY. AS YOU BEGIN TO SEE THIS COME TO FRUITION WHEN IT COMES TO GENERATIVE AI, I AM INTERESTED TO KNOW ABOUT PRICING. YOU DID SAY A FEW QUARTERS AGO FOR FISCAL YEAR 26 THAT YOU WOULD SEE SOME ISSUES FULFILLING THESE ORDERS. HOW DO YOU KEEP THAT THE SAME?
>> WE ALWAYS DO PRICING BASED ON VALUE DELIVERED. WE ARE RIGOROUS WITH THE SIMULATION OF THESE AI FACTORIES. THE WAY TO THINK ABOUT THIS IS, HERE IS THIS MACHINERY, AND YOU APPLY ENERGY TO IT, AND WHAT COMES OUT IS AI. WE CALL IT GENERATIVE AI. IN A LOT OF WAYS, IT IS LIKE GENERATING ELECTRICITY IN THE LAST INDUSTRIAL REVOLUTION, THE LARGE MACHINERY CALLED AC GENERATORS THAT PRODUCE ELECTRICITY. WE ARE NOW PRODUCING THIS MIRACLE CALLED ARTIFICIAL INTELLIGENCE.
LIZ: YOU SAID YOU ARE TRANSFORMING EVERY INDUSTRY AROUND THE WORLD, AND WE SEE THAT. YOU HAVE THE LOUDEST VOICES IN SILICON VALLEY. AI HAS HIT A WALL; IT HAS PLATEAUED; IT CAN'T GO FURTHER NOW. NAME TWO REASONS: DUE TO LACK OF GPUs AND TRAINING DATA, ALMOST LIKE HE WAS POINTING THE FINGER AT NVIDIA THAT YOU ARE NOT GETTING THESE OUT QUICKLY ENOUGH. WHAT DO YOU SAY TO THAT?
>> DEMAND IS GREATER THAN SUPPLY. WE NEED TO GET MORE OUT. WE WORK WITH THOUSANDS OF STARTUP COMPANIES CALLED AI NATIVE COMPANIES. FROM THE GROUND UP, THEY ARE BUILT TO BE AI COMPANIES. THIS IS A COMPANY WE DEVELOPED, CAPABILITIES AND PRODUCTS AND SERVICES. IT IS HARD TO KEEP PACING AND INFRASTRUCTURE AVAILABLE FOR EVERY ONE OF THEM. THAT'S THE REASON WE ARE RAMPING BLACKWELL SO HARD. WITH RESPECT TO AI, THERE'S FAIR DISCUSSION ABOUT SCALING LAWS. SCALING LAWS SAY THE LARGER THE MODEL, THE MORE DATA YOU TREAT IT WITH, AND THE MORE COMPUTING YOU NEED, THE MORE EFFECTIVE THE AI BECOMES. SO THAT IS WHERE WE ARE WITH RESPECT TO THE DEMAND OUT THERE. WE ARE RUNNING AS FAST AS WE CAN.
LIZ: YOU ARE STANDING PRETTY TALL AND HOLDING GROUND; THE OUTLOOK IS IMPRESSIVE TOO. CUSTOMER BASES IN INDIA AND THE U.S. HAVE TO HOLD BACK ON CHINA, DEPENDING ON WHAT REGULATIONS ARE IN THE UNITED STATES. THE MIDDLE EAST HAS SOME REAL AMBITIONS HERE.
>> IN JUST ABOUT EVERY SINGLE COUNTRY, THEY REALIZE THEIR NATION'S DATA, THEIR LANGUAGE, THE DIGITAL LANGUAGE AND CODES OF THEIR NATION, AND THEY NOW REALIZE THEY HAVE TO TAKE THE DIGITAL DATA TO NATIONS INTELLIGENCE. THEY HAVE TO DO IT THEMSELVES. THEY HAVE ENJOYED, LARGELY, IN THE UNITED STATES. WHETHER IN THE WEST OR THE EAST, EVERY COUNTRY IS JUMPING ONTO THE AI REVOLUTION.
LIZ: WHAT DO YOU SAY TO PEOPLE WHO ARE CONCERNED ABOUT THIS? THEY BELIEVE AI WILL TURN US INTO DIGITAL SLAVES AND THE MACHINES WILL RISE AND CONTROL ALL OF US. YOU'VE HAD THESE DISCUSSIONS BEFORE. WHAT IS YOUR GUT REACTION TO THAT?
>> AI CAN DO A LOT OF OUR TASKS, BUT THEY CAN'T DO 100% OF OUR JOBS. THE BIG IDEA THAT AI WOULD DO 100% OF SOMEBODY'S JOB IS VERY, VERY UNLIKELY AND IMPRACTICAL ANY TIME ON THE HORIZON. AI WILL DO 20%, 30%, OR 40% OF 100% OF THE JOBS IN THE WORLD, SO THAT MEANS AI WILL REVOLUTIONIZE EVERYBODY'S JOBS. IT IS REALLY IMPORTANT THAT EVERYBODY SHOULD LEARN HOW TO USE AI. THEY ARE NOT GOING TO LOSE THEIR JOBS TO AI; THEY ARE GOING TO LOSE THEIR JOBS IF IT HAPPENS TO SOMEONE WHO USES AI. THAT IS THE MOST PRACTICAL WAY OF THINKING ABOUT IT. JUMP ON AI; I ENCOURAGE EVERYBODY TO USE IT. IF YOU HAVEN'T HAD A CHANCE TO USE CHATGPT OR PERPLEXITY, THESE ARE INCREDIBLE; YOU SHOULD USE THEM EVERY DAY.
LIZ: I WOULD IMAGINE YOU DO. DON'T REPLACE NEWSCASTERS AND JOURNALISTS.
>> YOU ARE IN GREAT SHAPE.