6 days ago
Jensen Huang Defends Nvidia Against OpenAI Chip Competition
OpenAI is working on its own computer chips for artificial intelligence.
This could reduce its need to buy chips from Nvidia.
Jensen Huang, Nvidia’s CEO, said he is not especially worried.
He said Nvidia has been developing this technology for 33 years.
He also said Nvidia can make and deliver its technology on a very large scale.
Huang claimed Nvidia is still gaining share in the AI market.
Nvidia recently reported very strong revenue, especially from data centers.
However, some investors are concerned about Nvidia investing money in companies that may then use that money to buy Nvidia products.
Huang said AI companies need huge amounts of money to build and operate their systems.
Nvidia CEO Jensen Huang said OpenAI’s chip efforts do not worry him.
Huang said Nvidia’s 33 years of experience and ability to operate at scale provide an advantage.
He said Nvidia continues to increase its AI-market share despite new chip announcements.
Nvidia reported $96.2 billion in fiscal second-quarter 2027 revenue, with data-center revenue reaching $89 billion.
Investors have questioned whether Nvidia’s investments in AI companies could encourage them to buy Nvidia hardware with Nvidia-backed funding.
- Who
- Jensen Huang, Nvidia, OpenAI, and other AI companies.
- What
- Huang defended Nvidia’s position as OpenAI develops potential competing AI chips.
- Where
- The issue concerns the global AI-chip and data-center market.
- When
- The comments came as OpenAI and other AI companies seek to reduce their reliance on Nvidia GPUs; Nvidia also reported results for the second quarter of fiscal 2027.
- Why
- AI companies are developing or seeking alternative chips, while Nvidia argues that its experience, scale, and technology maintain its advantage.
Investor Concerns
Nvidia’s Defense
Nvidia’s investments in AI companies
Investor Concerns
Some investors question whether Nvidia’s financing deals could create a cycle in which companies use Nvidia-backed funds to purchase Nvidia hardware.
Nvidia’s Defense
Huang said leading AI companies need extraordinarily large amounts of capital and may not be able to raise money cheaply because they lack established financial track records.
Competition from alternative chips
Investor Concerns
OpenAI and other AI companies are pursuing their own chips to reduce their reliance on Nvidia GPUs, creating potential competition.
Nvidia’s Defense
Huang said similar chip projects have appeared before and argued that Nvidia’s experience, scale, market share, growth, and technological leadership remain strong.
Key facts
- Nvidia CEO
- Jensen Huang
- Nvidia revenue
- $96.2 billion in the second quarter of fiscal 2027
- Data-center revenue
- $89 billion, up 117% from a year earlier
- Nvidia experience
- 33 years developing its technology
- OpenAI effort
- OpenAI has been working on its own AI accelerator technology
- Nvidia investments
- Nvidia has invested in AI firms including OpenAI and Anthropic
Quotes
Jensen Huang
CEO of Nvidia
“If you look at all the XPU and startup announcements, you see that, to this day, Nvidia continues to increase its share of the AI market. Our growth is accelerating, and our technological leadership is solidifying.”
thehansindia.com
“You know, that's fine. There are so many XPUs being announced, and as we know, what we do isn't easy. We've been doing it for 33 years.”
thehansindia.com
Sources
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