Nvidia simply reported a $44 billion quarter. That’s up 69% from a yr in the past…
And practically sufficient income to purchase Common Motors outright.
Its information heart enterprise alone introduced in $39 billion. And regardless of U.S. export restrictions that hit gross sales to China, the corporate posted $18.8 billion in revenue.
However as spectacular as these numbers are, the true story from Nvidia’s earnings name didn’t come from the corporate’s stability sheet.
It was what CEO Jensen Huang stated about Tesla.
As a result of it factors to the place the following trillion-dollar AI alternative would possibly come from…
Huang’s Daring Prediction
Talking with Bloomberg Information final Wednesday, Huang singled out Tesla’s humanoid robotic undertaking, Optimus.
Supply: Tesla
He stated: “That is the primary robotic that basically has an opportunity to realize the excessive quantity and know-how scale essential to advance know-how.”
I’m on file that the robotic revolution is coming, and that the proliferation of humanoid robots over the following decade goes to come back as a shock to most individuals.
However what Huang stated subsequent about Optimus ought to make each investor take discover: “I feel that is prone to be the following multi-trillion greenback business.”
That’s a reasonably heady prediction from the man whose chips are powering all the AI growth.
Microsoft — which has a 49% stake in OpenAI — is shopping for Nvidia chips as quick as Huang could make them.
The corporate stated it processed greater than 100 trillion AI tokens final quarter. That’s solely attainable due to Nvidia’s highly effective GPUs.
Google, Meta and Amazon are all racing to construct their very own customized AI chips.
However proper now, they nonetheless want Nvidia.
The corporate has develop into very important to the worldwide tech stack. And that places Huang in a singular place.
Since he’s supplying the instruments to advance AI, he’s in a position to spot developments and make daring bets about what comes subsequent.
That’s why Nvidia invested in Utilized Digital Corp (NASDAQ: APLD), which builds information facilities for purchasers.
And why the corporate additionally owns shares of Arm Holdings (NASDAQ: ARM), which helps semiconductor corporations design superior computing chips.
And it’s why I’m maintaining an in depth eye on Tesla and Optimus.
Elon Musk says Tesla is already constructing Optimus models at its Fremont facility. The short-term objective is to deploy hundreds of those robots in Tesla’s personal factories by the top of subsequent yr.
However Musk’s long-term objective is far larger. He needs to provide one million Optimus models a yr by 2030.
Proper now, Optimus can stroll, stack packing containers and carry out primary duties. It’s nonetheless clunky and lurches when it walks. It’s form of like watching the primary iPhone attempt to load a YouTube video over 2G.
However as anybody who’s adopted Tesla — or Apple — is aware of, you possibly can’t decide a know-how by its first model.
We’re nonetheless initially of the curve for humanoid robotics, however this curve will quickly bend up because the know-how improves.
Identical to what’s taking place with AI.
Supply: ml-science.com
If Tesla can ship even a fraction of what it’s promising, it might upend whole sectors…
Logistics, elder care, retail, hospitality and even private companionship might all quickly be dealt with by humanoid robots like Optimus.
How huge might this get?
Analysts at Goldman Sachs assume humanoid robots could possibly be a $38 billion market by 2035.
Morgan Stanley places the potential nearer to $4.7 trillion a yr by 2050.
That’s a variety. However even when we land on the low finish, it will mark a seismic shift within the financial system.
Right here’s My Take
I don’t at all times agree with Jensen Huang. However when he talks, I hear.
In any case, he has efficiently pivoted Nvidia a number of instances. He was proper about GPU acceleration. He’s been proper about information heart acceleration.
And now he’s pointing to humanoid robots as the following tech frontier. A world the place labor isn’t constrained by individuals.
Tesla is constructing the form of AI-native, vertically built-in robotic platform that nobody else can match at scale.
However Optimus doesn’t simply signify the way forward for labor. It additionally represents a possible acceleration within the growth of AI.
You see, each time Optimus picks up a field, navigates a hallway or adapts to a brand new process, it generates real-world information.
This information is pure gold for coaching AI techniques.
As a result of it’s one factor to simulate intelligence in a lab, it’s one other factor totally to be taught straight from bodily interplay in the true world.
We don’t actually know but what it should take to realize synthetic superintelligence (ASI). Nevertheless it would possibly take one thing past larger language fashions and extra compute.
It would take grounding AI within the messy, bodily world.
Robots like Optimus function a form of sensory interface between machine studying and actuality.
And Tesla has a large head begin on this space as a result of it already has thousands and thousands of autos gathering real-time driving information.
In different phrases, Tesla has already constructed one of many world’s largest real-world reinforcement studying networks.
And now it may possibly carry that very same data-driven philosophy to humanoid robotics, making a loop the place every robotic learns from each different robotic’s expertise.
That form of networked intelligence could possibly be the lacking piece that pushes AI from slim to normal.
And THAT’S why I imagine Huang is so bullish on Optimus.
Regards,
Ian King
Chief Strategist, Banyan Hill Publishing
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