Nvidia CEO, Jensen Huang, believes advances in computing will keep the cost of developing artificial intelligence below the $7 trillion fundraising goal of OpenAI CEO, Sam Altman. (Bloomberg)AI 

Tech advancements will prevent AI costs from rising, says Nvidia CEO

Jensen Huang, the CEO of Nvidia Corp., expects that upcoming computing advancements will ensure that the cost of developing artificial intelligence remains significantly lower than the reported $7 trillion fundraising goal of Sam Altman.

“You cannot assume that you will buy more computers. You also have to assume that computers will get faster and therefore the total number you need will not be as large,” Huang said at the World Government Summit in Dubai on Monday. The 60-year-old’s company makes some of the most sought-after AI accelerators, and he’s confident the chip industry will lower the cost of AI as these parts are made “faster and faster and faster.”

Huang was responding to a report in the Wall Street Journal that OpenAI CEO Sam Altman is seeking to raise $7 trillion from investors in the Middle East, including the United Arab Emirates, for a semiconductor initiative aimed at boosting AI projects competing with Nvidia.

With Nvidia’s market value undisputed in the field of artificial intelligence training chips, it has risen to more than $1.7 trillion and multiplied Huang’s personal wealth. Altman and other AI developers are looking for ways to diversify their hardware options, including exploring their own chip-making ventures.

The world’s leading contract chip manufacturers Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. commit to investments of over $30 billion annually to stay ahead of potential competitors. For Altman to have a realistic chance of taking the lead, he would have to spend a lot of money on research, development, facilities and expert staff, but Huang’s view suggests that better, more cost-effective chips will make that unnecessary.

Still, Nvidia’s CEO doesn’t see an end to AI spending growth anytime soon. In his remarks, Huang estimates that the global cost of data centers using artificial intelligence will double in the next five years.

“We’re at the beginning of this new era. There’s about a trillion dollars worth of data centers installed. In the next four to five years, we’ll have $2 trillion worth of data centers delivering software around the world,” he said.

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