Jensen Huang says ChatGPT needs 100x more Nvidia AI chips

You’ve been playing around with ChatGPT, right? Pretty cool stuff. But have you ever wondered what it takes to make that AI brain actually think ?

Turns out, it’s a lot. Like, a whole lotta chips. And not the potato kind.

Jensen Huang Drops a Bombshell

Nvidia CEO Jensen Huang, the guy who’s basically the rockstar of the AI chip world, recently said something pretty eye-opening. He told CNBC that these next-gen AI models, the ones that can actually reason and explain their thinking (like ChatGPT 4o and Grok 3), need way, way more power.

How much more? Buckle up.

He’s talking 100 times more computing power than the older models. That translates to potentially 100 times more Nvidia AI chips!

Why So Much Juice?

Your old calculator could do basic math, right? Simple stuff. But now you’re asking AI to solve complex problems, write stories, and even debug code. That takes serious brainpower.

Reasoning AI isn’t just spitting out answers. It’s thinking through the steps, showing its work, and that requires a massive amount of processing.

Nvidia’s Winning (Big Time)

Nvidia already dominates the AI chip market, controlling somewhere between 70% and 95% of it. With this surge in demand for reasoning AI, their chips are hotter than ever. Some of these chips can cost up to $70,000 each!

Huang himself is super optimistic. “We’re just at the beginning of the reasoning AI era,” he said. And he’s putting his money where his mouth is, touting the demand for their Blackwell AI chip.

Big Companies are Investing

And get this: Meta and Microsoft, some of Nvidia’s biggest customers, are throwing serious cash at AI infrastructure. We’re talking billions of dollars. Meta alone might spend up to $65 billion, and Microsoft a staggering $80 billion.

What Does This Mean for You?

Well, for starters, it means AI is getting smarter, more capable, and more integrated into our lives. It also means that the companies powering these AI systems are investing heavily in the future.

And for Nvidia? It means business is booming. Their recent earnings report blew past Wall Street estimates.

Next time you ask ChatGPT a question, remember all the power it takes to give you that answer. It’s a wild world out there!