NVIDIA's CEO Talks Up AI Factories
NVIDIA CEO Jensen Huang announced the vendor’s roadmap yesterday in an extensive keynote highlighting how NVIDIA is meeting growing requirements for AI processing while keeping an eye on future trends. Still, though Huang was on top of his game, inflated expectations of NVIDIA continue to haunt the stock, which is digesting an enormous run of 10X gains over just a few years.
Huang loves math, and he particularly likes applying it to NVIDIA’s products and services. His keynote was replete with numerical examples of how his company’s new GPUs will keep pace with the need for more compute capacity while factoring in the attendant power requirements. At one point, he noted that reasoning models, or agentic AIs, will require 100 times more computational power than was anticipated just last year.
Tokens and More Tokens Required
One of Huang’s foundational messages was that because AI generates tokens, or what one NVIDIA blogger calls “tiny units of data that come from breaking down bigger chunks of information,” AI will continue to grow demand for greater and greater GPU horsepower, particularly as inferencing takes hold.
“Almost the entire world got it wrong,” Huang said in a veiled reference to the reaction to DeepSeek’s touted need for fewer GPUs to produce its models. “The computational requirement, the scaling law of AI, is more resilient, and in fact hyperaccelerated,” he said.
AI Factories Booming
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