Jensen Huang says Nvidia is the world's only tech company
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Jensen Huang, CEO of Nvidia. Photo: Woohae Cho/Getty Images)
Nvidia CEO Jensen Huang said his company is the only one in the world whose business model is fully driven by technology, rather than by social media or advertising, he said on a new episode of "The Joe Rogan Experience."
Why it matters: Huang is emphasizing his company as the central player in the AI race as competition heats up.
What they're saying: "Look at the large tech companies in the world today. Most of them have a business in advertising or social media or, you know, content distribution...Nvidia is the only company in the world that's large whose only business is technology," Huang said.
- "We only build, we don't advertise. The only way that we make money is to create amazing technology and sell it."
Between the lines: Companies like Meta and Google are referred to as tech companies, but much of their revenue comes from advertising.
- Technology fuels their advertising businesses, however, with AI features creating a windfall of ad-revenue at Meta, for example.
- As Wall Street has worried about the return on investment in AI, some investors tell Axios that the revenue for tech will still come from advertising in an AI-world.
Threat level: Another challenge for Nvidia is the competition between itself and its customers, as the major hyperscalers build out their own chip while still buying from Nvidia.
- Amazon is continuing to develop its own chips with multiple new offerings announced this week, which could be a more affordable alternative to Nvidia.
Zoom out: Nvidia is the darling of the AI trade that's currently dominating the stock market.
- The company alone makes up 1% of the global stock market and 8% of the U.S. market.
- Its chips, the most powerful available, are benefiting from a surge in demand from Big Tech companies investing about $500 billion in AI infrastructure this year alone.
What we're watching: How the development of AI impacts business models.
- "I don't think that anybody really knows," Huang said, regarding the future implications of the technology.
