The AI market will be worth $600 billion, Nvidia exec says
AI is probably bigger than electricity: StrategistScroll back up to restore default view. Speaking to a standing-room-only crowd at the Goldman Sachs Communacopia and Tech Conference on Tuesday, Nvidia (NVDA) exec Manuvir Das outlined some startling numbers on the market for artificial intelligence.
According to Das, the total addressable market for AI will consist of $300 billion in chips and systems, $150 billion in generative AI software, and $150 billion in omniverse enterprise software. These figures represent growth over the "long term," Das said, though he did not specify a target date.
The grand total adds up to a $600 billion AI-fueled market opportunity that is tied to what Nvidia calls "accelerated computing."
"It's not just about the chips, it's about the whole stack," said Das, Nvidia's vice president of enterprise computing.
Despite the recent boom in AI since last November, Nextdoor CEO Sarah Friar said that the value of AI has been building for years.
"It's not a new thing," Friar told Yahoo Finance's Brian Sozzi at the Communacopia conference. "ChatGPT unleashed generative AI and really brought it in, I think, to the cultural domain. But of course, we've all been investing in data for now decades, and we're starting to see it come to fruition."
Still, Das explained that when it comes to accelerated computing, the industry is still in its early stages.
"If you think about the traditional computing systems based on CPU computing, what has changed over the decades is simply the location — you're in the cloud, you're doing it on your phone, but it's essentially the same style of computing," Das told the audience. "And more and more, the functions of companies are being done in computing. That means you need more and more computing in the world, which means you need more data centers. You need more energy. You need more horsepower, and it's just not sustainable."
The way Das described it, Nvidia is capitalizing on an inevitability the company has been preparing for, in which corporate operations go digital and grow more efficient in previously unimaginable ways.
"It's time to start on a more sustainable trajectory," Das added. "We're saying [with] accelerated computing, which is with the same footprint, we can do 10 times, 100 times the work — that's going to be the only way."
Investors seem to agree. Nvidia stock has soared 232% to all-time highs this year, powered by blowout earnings and its pole position in the AI space.
"The simplest way of thinking about Nvidia is that we made this big bet," Das said. "It's been decades in the making."