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Nvidia CEO confirms Supercomputing powerhouse for internal testing

Nvidia CEO confirms Supercomputing powerhouse for internal testing

Between its market share, market capitalization, and prevalence in media and online discussions, Nvidia (NASDAQ: NVDA) is undoubtedly the leading company in the semiconductor industry.

The technology giant’s CEO, Jensen Huang, yet again demonstrated why his company is such a powerhouse in a November 7 appearance on the No Priors – an artificial intelligence (AI) and technology podcast. 

Specifically, the billionaire executive revealed several important facets of Nvidia’s process, including the fact that the firm builds its own computers in a relatively modular fashion, enabling their use and guaranteeing high performance no matter the quirks of the system the components are used in.

If you’re serious about software then you’re going to build your whole computer, and we build it all at Goodale. We build it at scale, vertically integrated, optimized full stack, then disaggregate everything and sell in parts—that’s the part that is completely remarkable about what we do. The complexity is insane because we want to graft our infrastructure into GCP, AWS, Azure, OCI. All their control planes, security planes, and cluster sizing are different, but we make it possible for them to accommodate Nvidia architecture…

Jensen Huang reveals the ‘brains’ behind Nvidia’s success

Furthemore, Huang revealed that the chipmaker uses as many as five supercomputers for its own internal testing.

I’m saying we build every single configuration. We have five supercomputers in our company today. Next year we’re going to build easily five more, so if you’re serious about software you build your own computers.

While the figure can be either exceptionally underwhelming or incredibly impressive, depending on the exact specifications of these machines, Huang’s prediction about future technological advancement offers a hint at Nvidia’s likely computing power.

Indeed, Nvidia is set to outpace the long-standing Moore’s law – a principle based on the observation that, on average, the number of transistors on an integrated circuit will double every two years without a proportional increase in cost.

According to Huang, the growth of artificial intelligence (AI) computing power is expected to rise between two and threefold every year, meaning advancement will be at least twice as fast as Moore’s law predicts.

The comment echoes CEO Jensen Huang’s earlier explanation that Nvidia is preparing to unleash a Blackwell-like revolution – in reference to the vast improvements made between Hopper and Blackwell architecture – every single year.

If successful, the rollout of microchip architecture would enable companies using Nvidia components to cut AI costs by half annually and would, due to the significant incentive to upgrade, provide the semiconductor giant with a steady supply of customers year-over-year (YoY).

Nvidia goes against big tech trend, offers long-term support to customers

Fortunately, Huang also revealed that Nvidia is still supporting 7-year old hardware with new software releases, showcasing the company’s focus on the longevity of its products. Such information is most welcome for those who do not intend to switch their components too frequently. 

It also goes against the recent trend, which has seen even companies otherwise known for insisting on backward compatibility and long-standing support, such as Microsoft (NASDAQ: MSFT), cut the life cycles of their products short.

Nvidia stock price chart

The long-term implications of Huang’s comments are also bullish for the future performance of NVDA stock which is already one of the market superstars in 2024 and has been since late 2022.

Since the year started, Nvidia shares have rocketed 201.85% to their press time price of $145.55.

NVDA stock YTD price chart. Source: Finbold

Additionally, NVDA stock’s rise since the original public release of ChatGPT on November 30, 2022 – an event widely seen as the start of the ongoing AI boom – showcases Nvidia’s importance for the sector. Indeed, the semiconductor giant’s stock stood at $16.92 on the day – once the June stock split is taken into account – and surged 760.22% to its press time price.

Featured image via Shutterstock

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