Nvidia CEO Jensen Huang has described the demand for the company’s upcoming Blackwell artificial intelligence chip as “insane.” In an interview with CNBC’s “Closing Bell Overtime,” Huang noted that every major player in the AI space is eager to secure the chip, with companies like OpenAI, Microsoft, and Meta leading the charge. These firms, developing large-scale AI data centers to power products such as ChatGPT and Copilot, have significantly heightened interest in Blackwell, which is expected to cost between $30,000 and $40,000 per unit.
Nvidia has been a primary beneficiary of the recent surge in artificial intelligence demand, with its shares increasing by approximately 150% so far this year. This growth is reflected in the company’s financial performance, with second-quarter revenue hitting $30.04 billion, a 122% increase compared to the same period last year. Nvidia anticipates even higher sales for the current quarter, with projections of $32.5 billion. Blackwell is expected to contribute heavily to this momentum, with CFO Colette Kress announcing in August that the company plans to generate several billion dollars in revenue from the chip in the fourth fiscal quarter.
Huang emphasized the company’s commitment to keeping pace with rapid advancements in AI technology, highlighting Nvidia’s strategy to annually update its AI platform. These updates are expected to enhance performance by two to three times, focusing on increasing capabilities, boosting throughput, and reducing costs and energy consumption. According to Huang, Nvidia is well on track to meet these goals and continue driving innovation in the AI hardware space.
