“Gold Rush” thanks to ChatGPT
Artificial intelligence triggers boom at Nvidia
05/25/2023 11:32 am
Nvidia benefits enormously from the hype surrounding programs like ChatGPT because artificial intelligence requires high computing power. The Americans are significantly raising their sales expectations and are looking extremely positively at the coming months.
The hype about artificial intelligence (AI) is giving Nvidia a boom in demand. Because programs like ChatGPT require a lot of computing power, the US chip manufacturer predicted surprisingly high sales for the current quarter. The past quarter also went better than expected. The company’s stock rose almost 30 percent to a record high of $391.50 in after-hours trading. In their slipstream, investors grabbed AI stocks overall.
“No company can build a state-of-the-art AI data center without the technology and all the software from a cloud computing provider, but we have all those capabilities,” said Nvidia CEO Jensen Huang. His group now prefers to sell complete AI supercomputers instead of individual chips.
“AI gold rush” should further fuel demand
Huang forecast sales of $11 billion, plus or minus two percent, for the second quarter. Analysts had only expected $7.15 billion. Revenues for the past quarter were also above expectations at $7.19 billion. “The current AI gold rush should fuel demand for the rest of the year,” said analyst Logan Purk of investment adviser Edward Jones.
Since ChatGPT was released after a long development period and thus made accessible to the general public, there has been an enormous amount of hype on the AI market. At Microsoft, the chatbot will play a decisive role in almost every product of the group in the future. According to a survey by the digital association Bitkom, more than half of the students in Germany have used ChatGPT before. The program is also popular with students.
The developer OpenAI has been warning of the serious risks of artificial intelligence for a long time. “We enslave AI, or it enslaves us,” the company’s boss, Sam Altman, told the New Yorker magazine in 2016. He is currently promoting, among other things, government regulations for the sector to curb potential risks. “Our goal is to advance digital intelligence in a way that is most likely to benefit humanity as a whole,” OpenAI said in the past.