Jenson Huang says that even free AI chips from his competitors can’t beat Nvidia’s GPUs.

Nvidia CEO Jensen Huang recently took to the stage to claim that Nvidia’s GPUs are “so good that even when the competitor’s chips are free, it’s not cheap enough.” Huang further explained that Nvidia GPU prices are not really significant in terms of the total cost of ownership (TCO) of an AI data center. It’s hard to deny the impressive scale of Nvidia’s achievements in powering the growing AI industry. The company recently became the third most valuable company in the world thanks to its AI-accelerating GPUs, but Jensen’s comments are sure to be controversial as he dismisses a whole constellation of rivals, such as AMD, Intel And a range of competitors with ASICs and other custom AI silicon types.

Beginning at 22:32 of the YouTube recording, John Schoon, SIEPR’s former trion director and Charles R. Schwab Professor Emeritus of Economics, Stanford University, asks, “You build completely sophisticated chips. Is that possible?” That you’re going to face competition that claims to be good enough — not as good as Nvidia — but good enough and a lot cheaper? Is that a risk?”

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