'Never bet against' Jensen Huang's 'ability to disrupt himself' says IBM chief

There's a good chance you know AI as that thing your grandpa uses to get information wrong, and also that thing that has caused the value of Nvidia to skyrocket. As OpenAI, Meta, and even the US government continue their investment in the technology, fears have sprung up that the bubble will burst and all that infrastructure will come down alongside it. But Arvind Krishna, the CEO of the huge technology company IBM, thinks Nvidia's Jensen Huang has the ability to shift the company if and when the time comes.

Talking to The Verge, and responding to the claim that Nvidia could be disincentivised to actually put out new products due to its leading role in supplying AI hardware, Krishna says:

"I think that when you have an incredibly valuable company that’s making its profit stream from a few products, there’s always an inherent or organic disincentive to try to modify that. That said, I would never bet against Jensen [Huang]‘s ability to disrupt himself and go towards the next plateau, if there is one."

Huang founded Nvidia in 1993, and it's been responsible for some of the best graphics cards for decades now, but the last few years represent unprecedented growth for the company. Nvidia, at the end of October this year, became the first ever $5 trillion company and the price per share has risen from $3-4 in 2019 to just shy of $180 as of the time of writing.

This is mostly because of the rapid growth of AI and the fact that Jensen Huang has been banging on about it since before it was cool, or at least, worthy of massive investment.

Nvidia is deeply embedded in AI infrastructure now, with its hardware being supplied to the largest data centres and AI companies. Its AI chip, the H100, is already incredibly popular and in demand, so there's a lot of cash in the current hardware, which new hardware could disrupt.

Though Nvidia recently reported revenues of $57 billion, with 'off the charts' AI GPU sales, it's not the only company with a lot of money in AI. OpenAI, in October, signed a mega deal with Broadcom for custom AI chips, and a market analyst recently suggested the AI bubble is 17x bigger than the dotcom bubble. Michael Burry, the man known for betting against the housing market in 2008, has also recently placed a billion-dollar bet against Nvidia and AI specialist Palantir.

Krishna, when asked if he believes we're in an AI bubble, says, "No. Do I believe that there will be some displacement and some of the capital being spent, especially the debt capital, will not get its payback? Yes."

Krishna instead likens it to the rise of fibre optics in the year 2000. He argues that the world is moving towards AI, and for every 10 companies competing in that gold rush, "maybe two or three of them will be the eventual winners." As far as large language models are concerned, Meta, OpenAI, Anthropic, Google, Amazon, and even IBM all have their own models.

One thing is made clear here: all those companies may be fighting for a share of the LLM pie, but Nvidia could be positioned to hand out the plates.

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