In a recent podcast hosted by Arm CEO Rene Haas, Nvidia CEO Jensen Huang shared his insights on the future of artificial intelligence. He highlighted that the next generation of AI is set to feature enhanced “reasoning” capabilities, marking a significant advancement over current systems like OpenAI’s ChatGPT. Huang pointed out that achieving this level of sophistication hinges on reducing computational costs.
Huang elaborated that the emerging AI tools will be designed to handle a complex series of questions involving hundreds or even thousands of steps, enabling them to draw conclusions from extensive data inputs. “This will allow future software to possess reasoning capabilities, setting it apart from existing systems,” he explained.
He also noted his reliance on ChatGPT in his daily routine, showcasing his awareness of current technologies while setting his sights on more advanced developments down the road. To support this vision, Huang revealed that Nvidia plans to enhance chip performance by two to three times a year, all while keeping costs and energy consumption stable. This approach aims to transform how AI systems handle reasoning, particularly in areas like pattern recognition and conclusion drawing.
“We have the capability to significantly reduce AI costs,” Huang stated. “Everyone understands the value of this. If we can drastically lower expenses, it will enable reasoning-like functions in inference operations.”
Nvidia currently commands more than 90% of the AI accelerator chip market. The company is broadening its offerings to include not just chips, but also computers, software, AI models, connectivity, and various services designed to encourage more businesses to adopt AI technologies.
Despite its leading position, Nvidia faces stiff competition from companies vying for a piece of this profitable market. Major players such as Amazon with its AWS division and Microsoft are developing their own AI chips, while AMD is positioning itself as a serious competitor in the AI arena, with plans to unveil new products at an event on October 10.
