In CNBC’s article “Ex-Google CEO Eric Schmidt sees Nvidia as big AI winner: ’You know what to do in the stock market” Kif Leswing quotes Eric Schmidt, former CEO and Chairman of Google, saying, “I’m talking to the big companies, and the big companies are telling me they need $20 billion, $50 billion, $100 billion — very very hard If $300 billion is all going to Nvidia, you know what to do in the stock market,” Eric Schmidt recently talked with Stanford students about the fast-growing field of artificial intelligence (AI) and its big investment opportunities. Schmidt highlighted a key trend: large companies are ready to invest up to $300 billion in Nvidia-based AI data centers. He noted the huge size of these investments, with companies looking to put in between $20 billion and $100 billion to improve their AI capabilities. Schmidt emphasized Nvidia’s crucial role in this AI surge, pointing out that the company’s data center chips have driven a remarkable 200% revenue growth over the past three quarters.
Schmidt’s comments show Nvidia’s important position in the AI revolution, thanks to its leading chip technology and major investments from big tech firms. While Nvidia is set to benefit greatly from this AI infrastructure spending, Schmidt suggested it might not be the only big winner. He noted that the gap between top AI models and their competitors is growing, with only a few large companies able to make the needed investments to stay ahead. Schmidt’s earlier investments in smaller AI firms, based on the idea of a narrowing competitive gap, are being reconsidered in light of recent developments.
Schmidt’s insights also point to wider effects on the tech industry and investment strategies. As key figures like Meta’s Mark Zuckerberg and OpenAI’s Sam Altman use Nvidia’s technology, the AI landscape continues to change quickly. Schmidt’s comments suggest that Nvidia’s competitive edge, supported by exclusive tools like CUDA, strengthens its role as a major player in AI. This evolving situation highlights the strategic importance of Nvidia’s technology and offers valuable advice for investors looking at the future of AI.
Comments