Nvidia simply reported a $44 billion quarter. That’s up 69% from a 12 months in the past…
And practically sufficient income to purchase Common Motors outright.
Its information middle enterprise alone introduced in $39 billion. And regardless of U.S. export restrictions that hit gross sales to China, the corporate posted $18.8 billion in revenue.
However as spectacular as these numbers are, the actual story from Nvidia’s earnings name didn’t come from the corporate’s steadiness sheet.
It was what CEO Jensen Huang stated about Tesla.
As a result of it factors to the place the subsequent trillion-dollar AI alternative would possibly come from…
Huang’s Daring Prediction
Talking with Bloomberg Information final Wednesday, Huang singled out Tesla’s humanoid robotic mission, Optimus.
Supply: Tesla
He stated: “That is the primary robotic that basically has an opportunity to realize the excessive quantity and know-how scale essential to advance know-how.”
I’m on file that the robotic revolution is coming, and that the proliferation of humanoid robots over the subsequent decade goes to come back as a shock to most individuals.
However what Huang stated subsequent about Optimus ought to make each investor take discover: “I feel that is more likely to be the subsequent multi-trillion greenback trade.”
That’s a fairly heady prediction from the man whose chips are powering your complete AI increase.
Microsoft — which has a 49% stake in OpenAI — is shopping for Nvidia chips as quick as Huang could make them.
The corporate stated it processed greater than 100 trillion AI tokens final quarter. That’s solely potential due to Nvidia’s highly effective GPUs.
Google, Meta and Amazon are all racing to construct their very own customized AI chips.
However proper now, they nonetheless want Nvidia.
The corporate has develop into important to the worldwide tech stack. And that places Huang in a novel place.
Since he’s supplying the instruments to advance AI, he’s capable of spot traits and make daring bets about what comes subsequent.
That’s why Nvidia invested in Utilized Digital Corp (NASDAQ: APLD), which builds information facilities for patrons.
And why the corporate additionally owns shares of Arm Holdings (NASDAQ: ARM), which helps semiconductor firms design superior computing chips.
And it’s why I’m protecting an in depth eye on Tesla and Optimus.
Elon Musk says Tesla is already constructing Optimus items at its Fremont facility. The short-term objective is to deploy 1000’s of those robots in Tesla’s personal factories by the tip of subsequent 12 months.
However Musk’s long-term objective is way larger. He desires to provide 1,000,000 Optimus items a 12 months by 2030.
Proper now, Optimus can stroll, stack packing containers and carry out primary duties. It’s nonetheless clunky and lurches when it walks. It’s form of like watching the primary iPhone attempt to load a YouTube video over 2G.
However as anybody who’s adopted Tesla — or Apple — is aware of, you possibly can’t choose a know-how by its first model.
We’re nonetheless in the beginning of the curve for humanoid robotics, however this curve will quickly bend up because the know-how improves.
Identical to what’s taking place with AI.
Supply: ml-science.com
If Tesla can ship even a fraction of what it’s promising, it might upend complete sectors…
Logistics, elder care, retail, hospitality and even private companionship might all quickly be dealt with by humanoid robots like Optimus.
How large might this get?
Analysts at Goldman Sachs assume humanoid robots may very well be a $38 billion market by 2035.
Morgan Stanley places the potential nearer to $4.7 trillion a 12 months by 2050.
That’s a variety. However even when we land on the low finish, it could mark a seismic shift within the economic system.
Right here’s My Take
I don’t all the time agree with Jensen Huang. However when he talks, I hear.
In any case, he has efficiently pivoted Nvidia a number of occasions. He was proper about GPU acceleration. He’s been proper about information middle acceleration.
And now he’s pointing to humanoid robots as the subsequent tech frontier. A world the place labor isn’t constrained by folks.
Tesla is constructing the form of AI-native, vertically built-in robotic platform that nobody else can match at scale.
However Optimus doesn’t simply signify the way forward for labor. It additionally represents a possible acceleration within the growth of AI.
You see, each time Optimus picks up a field, navigates a hallway or adapts to a brand new process, it generates real-world information.
This information is pure gold for coaching AI programs.
As a result of it’s one factor to simulate intelligence in a lab, it’s one other factor fully to be taught straight from bodily interplay in the actual world.
We don’t actually know but what it can take to realize synthetic superintelligence (ASI). However it would possibly take one thing past larger language fashions and extra compute.
It’d take grounding AI within the messy, bodily world.
Robots like Optimus function a form of sensory interface between machine studying and actuality.
And Tesla has a large head begin on this space as a result of it already has tens of millions of automobiles amassing real-time driving information.
In different phrases, Tesla has already constructed one of many world’s largest real-world reinforcement studying networks.
And now it could possibly carry that very same data-driven philosophy to humanoid robotics, making a loop the place every robotic learns from each different robotic’s expertise.
That form of networked intelligence may very well be the lacking piece that pushes AI from slender to basic.
And THAT’S why I imagine Huang is so bullish on Optimus.
Regards,
Ian King
Chief Strategist, Banyan Hill Publishing
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