Nvidia CEO cites 30x gap between chip supply and demand
Jensen Huang stated at the Goldman Sachs Tech Conference that demand for AI compute far outstrips supply. He detailed the economics of gigawatt-scale clusters and described Nvidia’s role in securing downstream demand through investment.
At the Goldman Sachs Tech Conference, Nvidia CEO Jensen Huang stated that there is a 30x gap between chip supply and demand. He noted that renting one gigawatt of power costs approximately 50 billion dollars, with capital expenditure for a Vera Rubin cluster at 60 billion dollars per gigawatt. Huang outlined the economics for OpenAI, stating that a 1-gigawatt Vera Rubin setup split 65% for inference and 35% for training allows for good margins at a token price of 1.70.
Huang described Nvidia as the 'central bank' of the AI trade, investing in downstream companies to secure demand. He remarked that he is a 'better investor' than many because he sees where the demand comes from. The conference atmosphere was less euphoric than the previous year, with no lines for Huang's keynote, and he was seen eating breakfast with investors.