Over the past 12 months, artificial intelligence computing company Nvidia has seen rapid growth as the generative AI boom has made it one of the world's most valuable companies, with CEO Jensen Huang saying the momentum shows no signs of slowing as he expects a surge in AI video.
Following the inclusion of Nvidia's GH200 Grace Hopper superchip in OpenAI's recently released GPT-4o (a multimodal model that can interact across different media), CEO Jensen Huang expects AI-generated video to drive further demand for the company's chips.
“There's a lot of information in life that needs to be backed up with video and physics. That's the next big thing,” Huang said. Reuters.
“We have 3D video and there's a lot to learn from that, so these systems are going to be pretty large.”
A boom in AI-generated videos is expected to arrive soon: OpenAI has announced that it will release a video generator called Sora in the coming months, while Meta and Google are also expected to release AI video platforms.
The AI boom has sent chipmakers soaring, with Nvidia's shares trading above $1,000 as of press time. The Santa Clara, California-based company on Wednesday raised its quarterly revenue forecast after seeing a five-fold increase in sales from its data center division in the first quarter of 2024.
In last year's fourth quarter financial report, NVIDIA reported record quarterly revenue of $22.1 billion, up 22% from the third quarter and a staggering 265% increase year-over-year.
The California-based company's data center revenue grew 409% year over year in the fourth quarter, while total revenue for the full year increased 126% to $60.9 billion.
“Demand is broad and large language models are becoming increasingly multi-modal and need to understand not just video but text, speech, 2D and 3D images,” said Darren Nathan, head of equity analysis at Hargreaves Lansdown. Reuters.
“Video generation is certainly one of the powerful and proven use cases for AI, and it's expanding beyond just content creation.”
Outside of generative AI models for creators and consumers, Tesla is a major Nvidia customer: Elon Musk's electric car company is using around 35,000 H100 GPU chips for its self-driving projects.
Image credits: Header photo licensed from Depositphotos.
