Jensen Huang predicts AI-generated videos will push demand for Nvidia chips

Nvidia expects its new AI models- capable of creating video and engaging in human-like voice interactions- to increase demand for the company’s graphics processors, its CEO Jensen Huang said.

“There’s a lot of information in life that has to be grounded by video, grounded by physics. So that’s the next big thing,” he told news agency Reuters.

Jensen Huang added, “You’ve got 3D video and you’ve got a whole bunch of stuff you’re learning from. So those systems are going to be quite large.”

Nvidia’s H200 was first used in OpenAI’s GPT-4o – a multimodal model capable of realistic voice conversation that can interact across text and image. Nvidia’s other customers- Google DeepMind and Meta- have also released AI image or video generation platforms.

This comes after the chipmaker forecast quarterly revenue far above estimates as it registered more than five-fold growth in sales at its data center unit in the first quarter. Following this, Nvidia shares rallied 9 per cent.

Derren Nathan, the head of equity analysis at Hargreaves Lansdown, said, “The demand is broad based and the large language models need to be increasingly multimodal, understanding not just video but also text, speech, 2D and 3D images.”

“It (video generation) is certainly one of the strong and already proven use cases for AI and it is extending beyond just content production,” he said.

Moreover, Nvidia’s finance chief Colette Kress said that Tesla has expanded its cluster of processors used in AI training to about 35,000 H100s for autonomous driving.