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Back to Jensen Huang | Does AI Revenue Justify Capex, '27 AI Bottlenecks, Singularity, Open vs Closed & more, with Jensen Huang & Brad Gerstner.

Why Will the Cost of Intelligence Keep Falling?

Jensen Huang says the last year unlocked knowledge, working memory, and tool use. Agents can now use the tools companies already run on, from Photoshop and AutoCAD to chip-design software, instead of inventing those tools again. Coding was the easy first job. He says a photo can already be turned into CAD so engineers can fine-tune it, and the same pattern is opening design, science, and other work. All of that happened while OpenAI and Anthropic each had only about two or three gigawatts of compute.

He expects the cost of intelligence to fall fast. More compute is arriving, and a smarter model is a more efficient one. He compares it to three decades in which computing cost dropped by a factor of two every year. He wants intelligence cheaper by a factor of two, or even 20, every year, because use will more than make up for the price cut. A result like Navier-Stokes, he says, came from exhaustive search over work scientists had already done, and that search takes a lot of compute. Many fields are at the same point.

Transcript

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

BG2Pod with Brad Gerstner and Bill Gurley

More from this episode

  1. Why Did Jensen Huang's Parents Fly in Overnight?Jensen Huang says five of the six people on the medal stage were born outside the United States. He received the National Medal of Science for NVIDIA.
  2. Why Didn't Keynes's 15-hour Week Happen?Jensen Huang says the hope of more free time is wrong. For most people, intelligence unlocks more opportunities, and ambitious people will pursue them.
  3. Did Jensen Huang Understate Physical Artificial Intelligence?Jensen Huang says he understated the $100 billion figure. The first six months already produced $10 billion in physical artificial intelligence.
  4. How Many Computers Does Physical AI Need?Jensen Huang says building a physical artificial intelligence platform takes three computers and three complete stacks, and he says it takes three robots as…
  5. Is AI Alignment a Forever Problem?Jensen Huang says alignment is a forever problem. Safety that depends on perfect alignment never arrives. The answer is containment.
  6. 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.
  7. Why Put Nvidia Computers on Starship?Jensen Huang says NVIDIA's engineers and Elon Musk's team are designing a server that works in space and on Earth.
  8. Why Do Most AI Startups Use Open Models?Jensen Huang says the frontier labs are only part of NVIDIA's machines. He puts them at about a quarter of the compute, maybe 30 percent.
  9. Why Does Jensen Huang Expect Four Trillion a Year?Jensen Huang says that as the decade ends, yearly infrastructure build-out will probably land between three and four trillion dollars, closer to four than to…
  10. Why Can't Nvidia Fill Its Order Book?Jensen Huang says every large cloud, every neocloud, and every big manufacturer had already ordered, and so had the startups.
  11. Why Did Jensen Huang Call Specialization the Enemy?Jensen Huang says specialization is the enemy of fungibility and the enemy of durability.
  12. What Yearly Computing Build Would Not Surprise Jensen Huang?Jensen Huang says the world is running about a trillion dollars of information technology buildout each year.

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