Jensen Huang's "dominant response": NVIDIA is progressing so fast that competitors should give up
Jensen Huang believes that developing AI chips in-house is not that simple, and major clients' plans to develop their own chips will ultimately be abandoned. He also revealed that NVIDIA is adjusting its strategy, no longer binding network technology to exclusive sales of its own chips, but instead opening it up to clients, including competitors
Jensen Huang made bold statements at the analyst meeting, expressing that he feels no threat from major clients developing their own AI chips.
At this week's analyst meeting in Paris, Huang did not hide his confidence. In response to the challenges posed by major clients like Amazon AWS, Microsoft, and OpenAI launching their own chip development plans, the head of NVIDIA gave an almost provocative response: NVIDIA's pace of technological advancement is so rapid that most client companies will ultimately abandon their chip projects.
He stated:
“If making AI chips were that easy, gosh, I don’t know why I’m still working so hard.”
Plans to Open Network Technology for a Bigger Slice of the Pie
More intriguingly, Huang revealed that NVIDIA is executing a strategy— no longer binding its network technology to exclusive sales of its own chips, but instead opening it up to clients, including competitors.
Behind this shift is the proactive collaboration demand from some clients—they indicated that if they could use NVIDIA's network technology to connect their own chips with NVIDIA's GPUs, they would be willing to “source all other devices from NVIDIA.”
Huang did not hide his optimism about this strategy, calling it a “super smart strategy.”
Analysts pointed out that this move could not only expand NVIDIA's market share but also deepen clients' dependence on NVIDIA products through ecosystem lock-in
