Nvidia CEO Jensen Huang made a rather controversial statement during his speech at the Morgan Stanley Technology, Media, and Telecommunications Conference. He said, "The fact that everything is in short supply right now is just wonderful for us [Nvidia]."
Huang's statement came during a discussion on the development of artificial intelligence infrastructure, where bottlenecks were cited, including limitations related to the supply of memory chips, silicon wafers, chip packaging, energy issues, and data center capacity. In other words, the discussion wasn't limited to the gaming products the company was once associated with.
According to Huang, the restrictions are pushing customers to choose the most powerful option. He added that this puts Nvidia in a favorable position, as it can secure large supply chain volumes. He stated that Nvidia has secured supplies of memory, silicon wafers, CoWoS enclosures, systems, cables, and other components necessary for the large-scale deployment of AI infrastructure.
"You know what? Launch that new DRAM fab, because I'll be using it. You can be absolutely sure of that. I think the fact that everything is in short supply right now is just great for us," Huang said.
His statement may seem highly controversial and even somewhat provocative, as the shortage has affected not only the data center segment, but the computer hardware market as a whole, including the gaming segment. Previously, Nvidia confessedThat supply constraints will hinder the gaming hardware market is a common theme among memory manufacturers and graphics card partners, who point to limited supplies of key components. However, Huang seems unfazed.
Obviously, gamers don't share the Nvidia CEO's enthusiasm. But major cloud companies, AI firms, and investors are certainly happy about it.
"I love constraints. I really love constraints. The reason is that in a world of constraints, you have no choice but to choose the best. You can't waste resources on random choices. If data centers, land, power, and deployment space are limited, you won't just put anything on it. You'll put something you know will deliver the performance you need and allow you to build an entire AI factory from the moment you get it. We're the only company in the world that can come to your company and help you build an entire AI factory. You know, if anyone here needs an AI factory, I'm happy to help," Huang continued.
As VideoCardz writes, Nvidia's financial strength allows it to reserve all the necessary capacity from chip manufacturers, making it unavailable to smaller competitors. However, for the rest of the market, this is yet another reminder that the development of the AI segment continues to unstoppably consume resources that could otherwise be distributed among broader market segments, including consumer and gaming.
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Source: 3dnews.ru
