LIVE: Jensen Huang on Building the Dynamo of the Intelligence Age

**Konstantine Buhler** (0:00)
Thank you so much, Jensen. So we are in the middle of a massive AI revolution. It is probably bigger and faster than even the industrial revolution.
And you have called out what's happening right now as the largest infrastructure buildout in human history. At the center of that buildout is the AI factory, and the company enabling all of that is Nvidia. Can you tell us what is an AI factory, and why is it the best investment for any enterprise in the next decade?

**Jensen Huang** (0:42)
Okay. So you could understand AI in a particular number of ways. The way that you understand AI probably most is through a chatbot, through a web browser, you're interacting with it, you give it a prompt, it says something back to you.
And even those of you who have been using AI for some time, you've seen in the last couple, two, three years, a very significant evolution, improvement in the capabilities of AI. Two years ago, you heard about ChatGPT. And ChatGPT basically is a computer software that understands the input you give it, it can perceive, it can understand information, and it can translate and generate the information into something else. Okay, so you can give it a prompt and you can say, here's this PDF I gave you, I would like you now to summarize it. It went from text to text. You could also tell it, here's a PDF I gave you, I would like you to now generate an image of that story. It go text to image. You could use go from image to text, meaning you could give it a picture and you can, what's happening inside this picture? It goes image to text. Does it make sense? Anything to anything else. And AI in the last, in two years ago, was largely able to do this translation, we call it generation, generative models. Generative AI. But the thing that is very big deal inside that word generative AI is in order to do something even more valuable than understanding and generating is thinking. Well, you can't think if you don't generate words. And so the foundation of generative AI gave us the ability to generate internal thoughts, thinking, reasoning, step by step reasoning, problem solving. It also allowed us to do another thing that is now very important, which is generate intelligence to control something else, to generate control to use a tool. Does it make sense? To use a browser, use a spreadsheet, use Photoshop, use PowerPoint, use something, use AutoCAD, use another tool. Now, that tool today is digital, but someday that tool will be mechanical. So if I generate a command to a mechanical system, that would be called robotics. If I generate commands for a machine with steering wheel, that would be called self-driving cars. Does that make sense? Okay, and so two years ago, two years ago, in fact, you saw the foundations, we call it chat GBT, and everybody said, ah, you know, it's fun, it's silly, or it produced a whole bunch of crazy hallucinated text. That's all true, but it was the foundational technology that led to all of this.
Two years later, we now have agentic systems. Now, that's one view of AI. I just described the view, which is, what can AI do, right? And so, now all of you realize, you see it from chat GBT, you see it from Codex, you see it from Cloud Code, you see that it's now able to not just understand, but it's able to do work, reason and do work. Now, two years ago, when AI was able to understand you and generate information, that was interesting novel, a little cute, whenever you need a poem written, great way to do it, right? Who doesn't want to write a country song? And so, that was two years ago, but now, because it's able to do work, AI is valuable. Valuable meaning, it can generate information, it can generate useful work, and it could be paid for. Because we pay for, we're interested in having friends that are smart, we love people who are know-it-alls, but we don't pay them for it. We pay for people who do work. Does that make sense? All right, which is, what happened in the last two years, AI went from having this capability, to now, agent tech, went from not very valuable to now producing useful work. So much useful work, that you and I are doing this every day, we're paying AI by the hour.
Right? And so, we might pay them $30 an hour to do the work, $20 an hour to do the work. We're basically paying AI a lot of money today. The fastest growing software business in the history of mankind. Because now it's doing useful work and we can pay them to do it. Now, that's one view of AI, which is what it can do. But one other view of AI that's really important to help reason through what Konstantine is saying. So for example, the reason why some companies, some people are able to build great businesses, and could maneuver themselves into the center of very large industries, is because when they see this capability, this is very interesting. One interesting thought is, if we're able to do this, what is the implication to this downstream industries? That's an interesting conversation we should have. Okay? So now that AI can do this, what happens to all the industries like health care, and financial services, and life sciences, manufacturing, logistics, transportation?