Jensen Huang Says Even Free AI Chips From Competitors Can't Beat Nvidia's GPUs

An anonymous reader shares a report: Nvidia CEO Jensen Huang recently took to the stage to claim that Nvidia's GPUs are 'so good that even when the competitor's chips are free, it's not cheap enough.' Huang further explained that Nvidia GPU pricing isn't really significant in terms of an AI data center's total cost of ownership (TCO). The impressive scale of Nvidia's achievements in powering the booming AI industry is hard to deny; the company recently became the world's third most valuable company thanks largely to its AI-accelerating GPUs, but Jensen's comments are sure to be controversial as he dismisses a whole constellation of competitors, such as AMD, Intel and a range of competitors with ASICs and other types of custom AI silicon.

Starting at 22:32 of the YouTube recording, John Shoven, Former Trione Director of SIEPR and the Charles R. Schwab Professor Emeritus of Economics, Stanford University, asks, 'You make completely state-of-the-art chips. Is it possible that you'll face competition that claims to be good enough -- not as good as Nvidia -- but good enough and much cheaper? Is that a threat?' Jensen Huang begins his response by unpacking his tiny violin. 'We have more competition than anyone on the planet,' claimed the CEO. He told Shoven that even Nvidia's customers are its competitors, in some cases. Also, Huang pointed out that Nvidia actively helps customers who are designing alternative AI processors and goes as far as revealing to them what upcoming Nvidia chips are on the roadmap.

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