Transcription
investing club's monthly meeting. One of the amazing things about this club is the access. In fact, I have some club friends with me now. But because Nvidia is the most important stock in this market and Jensen is arguably the best executive in history, I want to make sure everyone has a chance to see some of the highlights, so take a look.
>> You've taught us that this is the fourth Industrial Revolution.
>> And that there are room pretty much for everybody. So surprising that Lisa Su and AMD team up with OpenAI after you just teamed up or welcoming to some degree, because you need to have everybody doing this in order to make it so that you're not the gating factor, because you can't make everybody's chips.
>> We could try.
>> All right. But I mean, AMD, you know.
>> Give us a chance.
>> Well you could.
>> You could count on me. You can count on me.
>> Lisa were here. I think she said the MI 450 is every bit equal to yours. And I would say I want to hear from Jensen because that's a chip. You're not a you're a platform and you're software. You're loaded with software. And so therefore a piece of hardware may not be equal to it for total cost of ownership.
>> We do we do very different. We build some things that are similar in category, but we're very different companies. You know Nvidia started out as a graphics chip company and over time we became a computing platform company. And a computing platform company has largely software. And you have you have a lot of developers and ecosystem that that create other software that sits on top of your computer would become a computer platform company. When artificial intelligence came along, we realized that artificial intelligence are really large computers, and the entire data center is essentially one computer. And so we went off to work on distributed computing using multiple computers, working together into one giant system. So networking matters, switching matters. Tons of software is involved. And so today when you when you look at the computers we make, they're, you know, a thousand acres large. It's a giant system, hundreds of megawatts, you know, gigawatts at a time. And that's that's the reason why a new industry has emerged. This industry requires factories that manufacture numbers, which, when reformulated, becomes intelligence. And so it's an intelligence manufacturing factory. And that's the, you know, this, this new, this new industry produces the most valuable thing the world has ever known. Intelligence. And and so our company, our company builds these large infrastructures. And it's got lots of technology inside the GPU, which we invented in 19 1996. I think it is is one of the technologies inside. But there's a whole bunch of technologies. And, and so we're, we're, we're we're different. Yeah. We're different.
>> Let me ask you a question about the recent deal that you made with Intel. Now, I know Intel from I knew Andy Grove and a person on the board who suggested that they do a deal, make a deal with a company. That sounds a lot like you. During the period when I know you were speaking to Andy and Andy was quite disrespectful, but that was his way. He just was his way. It's not the way. It's the way that he had himself set himself up, frankly.
>> Intel Intel dedicated 33 years of our lives trying to kill us, right?
>> And then a man whom I heard you make a.
>> That was actually a that was actually a mission.
>> But that's absolutely true. I mean, from my point of view, from a board member who said, listen, we have to destroy these guys. However.
>> Not dead.
>> Yet, a new a company of a new man lit Bhutan comes in. I heard you give a testimonial to him in the 2022 Noyce Awards. That was gracious and it made me think, wow, there could be not only just a detente, but maybe one day they'll be talking to each other. This is an important deal for you, isn't it?
>> You know, we're lovers, not fighters and. And and it is true. It's true that that it's if you have an imagination about the future, it is possible to bring other people along. And I always like it. I always like it when when we give a keynote, everybody's stock price goes up. When somebody else gives a keynote, our stock price goes down. And so so it says it says it says it says that that the way we see the world, the way we see the future is inclusive for other people. And we create opportunities that brings other people along. Our our partnership with Intel is because I can imagine a future for the both of us where we could both win and and not one of us have to win, the other one to lose. And this partnership brings them into our ecosystem. And so they're going to they're going to build a custom microprocessor for us. We're going to also build a custom microprocessor for a new market. And so there are two new products that comes along from this partnership. And and also, you know, we invested $5 billion in them, which is, you know, no small amount. There. Now, I'm an Intel shareholder.
>> Why not? I mean, you're a big shareholder and.
>> And ever since I invested, it went up something like 50% or something.
>> I mean, we don't have a we don't have an open AI valuation, but I think that there are a lot of people who question that. We're trying to figure out whether there's some sort of circular nonsense was obviously clearly from events not. But what bothered me is, is that people don't realize how good an investor you are. I actually have a friend who made a pitch in front of you and they didn't expect to see you. They expected to see minions, but that you were there and you drilled them for three hours of questions. You make these investments, don't you?
>> Well, you know, it's for us. We make good investments. And the reason for that is because, well, first of all, we're smart and but but the reason why we invest is because we imagine we imagine building something together. And so when we wanted to create a new type of cloud, we invested in a small company called Core Weave. And then we helped them build themselves into a company, and they went public and we made a fortune. And that was fantastic. It was great for them. It was great for us. Now we're going to invest in OpenAI, potentially invest in OpenAI. It's a great privilege and I'm very grateful that they invited us to invest. But the partnership of OpenAI is really it's incremental to all of the work that we've done with that we are doing with Azure and OCI and, and core weave. And so we're going to build up a whole bunch of capacity for computing for them, because AI needs a lot of compute. This is this is a partnership that for the first time, OpenAI is going to buy directly from us. Usually they they buy we a cloud service provider buys from us and they rent from a cloud service service provider. And so now it's going to be a direct partnership. We're going to help them build an AI infrastructure that they operate themselves and, and really set them up for, you know, five years out when they're going to operate their own cloud anyhow. And so this is going to it's a great partnership.
>> Do you think we're all waiting for trade talks, or have you gotten less optimistic than you were last time I talked to you that there'll be something that allows, let's say, commerce with us in China?
>> Well, first of all, if there are any, you know, investors, all of our guidance assumes China zero. And so if anything works out with China, it will be a bonus for for us. And now China is a very large market. It's a very important market. And but let's take a step back. I think the the. The policy makers want a great outcome for America. And and they want America to win the policies, want policy makers. President Trump wants America to to win the AI race. This is an important technology period. And AI is going to be foundational and transformative to every single country. And and President Trump wants America to win the AI race. And so the question is, is how to do that? How to how to ensure that that American companies have all the best Nvidia technology and the best chip technology on the one hand, on the other hand, understanding that in order to succeed at AI, we really want the world to build on the American tech stack, just as we want the world to be built on the American dollar. We would like the world to be built on the American tech stack, including developers in China. And so this, this is that that balance of how do we ensure that American companies get the best technology on the one hand, but also, on the other hand, provide the technology to Chinese companies so that China could be built on American technologies. And this this finesse, this nuance is is a delicate balance. And this is where policymakers will have to wrestle with some of this. And and I you know, I hope that I hope that we find a good place. A complete ban is not not good for American companies. Long term, it might hurt Chinese companies a complete ban, but it hurts American companies worse long term. And so I think this this this observation, this realization and and this, this, this nature of AI and the computer industry, I hope, is understood and and that we can work this out someday. But until it gets worked out, we should just assume it's zero. And I hope that we can get back to China someday.
>> I know you said zero, but you were optimistic that something good could happen. Do you still feel that way?
>> Well, I'm always optimistic.
>> Fair enough. You are always optimistic.
>> I'm always optimistic.
>> And I buy into that. I'm not going to just always.
>> I'm always optimistic. And because. Because on first principles, it makes sense for America to win. Okay. It's a pro America policy. It's great for American technology. If we if America wants to win the global AI race, we need we want the whole world to be building on American tech stack just as we want, you know, the whole world to be building on on the internet. That was really invented here in the United States. We want the whole world to be building on windows. We want the whole world to be building on, you know, AWS or Apple or we want we want the whole world to be building on that. That's a good thing. It helps American industry helps American companies. And and it builds it allows allows the world's every country to be built on American technology. That's a good thing.
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