Since the popularity of ChatGPT, American hardware firm Nvidia has been riding the AI craze.
The company made a fortune this year selling GPUs that powered generative AI models, and it now expects the AI sector to surpass $600 billion.
Nvidia’s Head of Enterprise
Manuvir Das, Nvidia’s Head of Enterprise Computing, discussed the company’s prognosis for the AI business while speaking at the Goldman Sachs Communacopia & Tech Conference.
AI sector to surpass $600 Billion
He expects Nvidia will experience “exponential growth” as a result of the massive demand generated by the race to develop generative AI among all of the tech titans.
Das thinks that the semiconductor part of the AI market will be worth up to $300 billion in the future.
With GenAI and omniverse enterprise applications adding another $300 billion.
He went on to say that, despite the recent surge in the AI business, there is still a lot more to come in the future.
GenAI and Omniverse Enterprise
More and more functions of companies are being done in computing.
That means you need more and more computing in the world, which means you need more data centers. You need more energy. You need more horsepower, and it’s just not sustainable.
The statistics forecasted by Nvidia are not out of line with current industry trends, which indicate strong growth in the future years.
Nvidia’s Data Centre
A good example is Nvidia’s data centre segment, which had a significant revenue increase in FY23, driving the company to a trillion-dollar valuation.
Needless to say, this will not happen immediately, but given that the sector has yet to reach its peak, it is realistic to anticipate that the projections described by Nvidia may unfold over a decade.
To read our blog on “Nvidia sales are up twice as much because of ChatGPT,” click here