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How Did Nvidia's Dollars Per Gigawatt More Than Double?

Jensen Huang says Nvidia's market share is still increasing even though the company is already large and the share was already very high. Nvidia offers much more per gigawatt than it used to, so a larger dollar share of the world's capital spending now lands with Nvidia.

Nvidia used to be a GPU company, then became the largest and fastest-growing networking company. Huang says Nvidia is now going to be one of the largest CPU companies and surely the fastest-growing one. Nvidia is in computing for storage, computing for the knowledge infrastructure, and security with OpenShell and Sentry. The offering into one gigawatt went from about 18 billion dollars per gigawatt, to 20-some-odd billion per gigawatt, to 40-plus per gigawatt. Huang's sense is that the amount keeps going up. Six years ago Nvidia's percentage of the world's CapEx was in the single digits. With the world's CSPs, he thinks Nvidia is probably running about 40 percent. Outside the CSPs, on-prem or neoclouds, half of the business, the percentage of CapEx is probably 80 percent. Half the business at 40 percent, half at 80 percent, and both doubling every year, so Nvidia's percentage of the world's CapEx is still growing.

Buyers are shifting toward Nvidia's computing platform, and Nvidia also captures more of each gigawatt the world builds. To the world, Huang says, it is a dollar share of the market.

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Transcript

Jensen Huang | Does AI Revenue Justify Capex, '27 AI Bottlenecks, Singularity, Open vs Closed & more ·

BG2Pod with Brad Gerstner and Bill Gurley

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