The CEO of the most valuable company by market cap says that a new arms race in the tech industry is underway.
In the company’s latest earnings call, Nvidia (NVDA) chief executive Jensen Huang says the largest cloud service providers or hyperscalers are making massive bets on artificial intelligence (AI).
According to Huang, Amazon, Google, Meta, and Microsoft are sinking hundreds of billions of dollars per year into AI, fueling a new race in the tech industry.
“As you know, the CapEx (capital expenditures) of just the top four hyperscalers has doubled in two years. As the AI revolution went into full steam, as the AI race is now on, the CapEx spend has doubled to $600 billion per year. There are five years between now and the end of the decade, and [the] $600 billion only represents the top four hyperscalers.”
CFO Colette Kress reinforces the massive spending theme in AI, projecting trillions in global artificial intelligence infrastructure investment.
“We are at the beginning of an industrial revolution that will transform every industry. We see $3 to $4 trillion in AI infrastructure spend by the end of the decade.”
The comments from Nvidia’s top executives come following the firm’s stellar performance for the quarter ending in July. In its latest earnings report, Nvidia generated $46.7 billion in revenue to mark the highest quarterly revenue in its history.
The firm also says its revenue soared 56% year-over-year and 6% quarter-over-quarter as data center sales shattered $41.1 billion, while announcing a fresh $60 billion stock buyback.