According to Nvidia CEO Jensen Huang, the company’s recent price hike for its AI chips could potentially add $1 trillion in value to the company by 2024. The price increase, which affects Nvidia’s H100 and L40 chips used for AI applications, is a response to the surging demand for AI computing power. Huang believes that the higher prices will help Nvidia capture more value from the rapidly growing AI market. He stated that the price hike was necessary to ensure Nvidia can continue investing heavily in research and development to maintain its technological lead. The move comes as major tech companies like Microsoft, Google, and Amazon are racing to develop and deploy advanced AI systems, driving up demand for powerful chips. Huang emphasized that Nvidia’s chips offer unmatched performance and efficiency for AI workloads, justifying the higher prices. However, some analysts have raised concerns about potential backlash from customers and the risk of competitors undercutting Nvidia’s pricing.
Source: https://www.businessinsider.com/nvidia-taiwan-tsmc-ai-chip-price-hike-value-jensen-huang-2024-6