Nvidia wants to drive AI costs down as 'reasoning' models rise
Nvidia's CEO said the AI chipmaker is building new chips on a one-year cycle
Nvidia’s chips have been a driver of the current artificial intelligence boom — and the chipmaker only wants to make it move faster, chief executive Jensen Huang said.
Nvidia's CEO Jensen Huang recently appeared on the Tech Unheard podcast, where he discussed the rapid pace of AI innovation, stating that it is not slowing down, but rather accelerating. Huang attributed this accelerated progress to Nvidia's focus on designing new chips and co-designing entire systems to improve performance while reducing energy consumption and costs.
According to Huang, NVIDIA has achieved a remarkable one-year cycle for producing new chips, which he credits to the rapid advancements in technology. The company is designing six to seven new chips per system, enabling them to reinvent the entire system and invent new technologies that improve performance by two to three times while using the same amount of energy and cost each year. This approach has allowed Nvidia to reduce the cost of AI by two to three times per year, outpacing Moore's Law.
Huang emphasized that Nvidia is committed to driving down the cost of AI as the industry moves towards even more complex models. The recent release of OpenAI's "reasoning" AI models, such as o1, is a prime example of this evolution. These models are designed to spend more time thinking before responding, mimicking human-like reasoning. In the future, AI services like OpenAI's ChatGPT will iteratively reason about the answer, requiring significantly more computational power.
Despite the increased demands, Huang believes the trade-off is worthwhile, as the quality of the answer is significantly better. He emphasized that Nvidia aims to drive the cost down so that this new type of reasoning inference can be delivered with the same level of cost and responsiveness as previous models.
Nvidia's commitment to accelerating AI innovation has not gone unnoticed, with the company's stock climbing back towards its record high of $135 in June. The chipmaker's shares opened up almost 1% at around $134 per share on Wednesday, a testament to the company's continued growth and success in the rapidly evolving AI landscape.
In conclusion, Nvidia's CEO Jensen Huang is confident that the pace of AI innovation is not slowing down, but rather accelerating. The company's focus on designing new chips and co-designing entire systems has enabled them to improve performance while reducing energy consumption and costs, driving down the cost of AI and paving the way for even more complex models in the future.
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