Jensen Huang of Nvidia on the Future of A.I. | DealBook Summit 2023

In the DealBook Summit 2023, Nvidia's CEO, Jensen Huang, discusses the future of AI and its implications on various industries. Huang shares insights on the development of AI supercomputers, the evolution of computing, and the challenges faced by Nvidia. He emphasizes the importance of corporate governance and the balance between innovation and national security. Huang also reflects on the company's journey, the complexities of the chip industry, and the potential for AI to revolutionize computing.

Takeaways

• 🚀 Nvidia's journey began in 1993 over breakfast at Denny's and has since become the world's most valuable semiconductor company.
• 🌟 Jensen Huang delivered the world's first AI supercomputer, the DGX, to Elon Musk, which took five years to develop and is as heavy as an electric car.
• 📈 Nvidia's market cap has risen significantly, reaching $240 billion, reflecting the company's success in the AI space.
• 🔍 The company's early insights into the potential of AI, following the remarkable results of AlexNet, led to a shift in how computing and software development are approached.
• 🤖 AI's current capabilities are focused on perception and pattern recognition, but complex reasoning and multi-step problem-solving are yet to be fully realized.
• 🔮 Predictions suggest that within the next five years, AI could achieve results on par with humans in basic intelligence tests.
• 💡 The design of Nvidia's chips today is assisted by AI, highlighting the symbiotic relationship between AI and the technology it helps create.
• 🌐 Geopolitical considerations and national security concerns influence the business strategies and regulations surrounding AI and chip technologies.
• 🔄 The reinvention of computing, including networking, switching, and chip design, is necessary to fully leverage the power of AI and deep learning.
• 🌐 The industry is on the cusp of a new generation of computing, which hasn't been reinvented in 60 years, marking a significant shift in technology.

Q & A

What is Jensen Huang's perspective on the future of AI and its implications for computing?

Jensen Huang believes that AI is not just a chip problem but a reinvention of the entire computing industry. He emphasizes that deep learning and AI have fundamentally changed how computers work, how software is written, and the type of applications that can be developed. He sees this as a new generation of computing that hasn't been reinvented in 60 years, highlighting the significant shift from retrieval models to a combination of retrieval and generation in computing.

How did Nvidia become a leader in the AI and semiconductor industry?

Nvidia became a leader by recognizing the transformative potential of AI early on and focusing on creating a new kind of computing infrastructure. They developed the first AI supercomputer, the DGX, which was a result of five years of work and is now used worldwide. Their success is attributed to a deep understanding of the industry's needs and a commitment to innovation.

What was Jensen Huang's reaction to the advancements in AI and machine learning demonstrated by AlexNet?

Jensen Huang was amazed by the results achieved by AlexNet, which showed unprecedented success in computer vision tasks. He and his team at Nvidia realized that this was going to change the way computing was done, the way software would be written, and the types of applications that could be created, leading to significant advancements in the field.

How does Jensen Huang view the role of corporate governance in the context of AI and technological advancements?

Huang emphasizes the importance of proper corporate governance, especially when dealing with powerful technologies like AI. He believes that companies should be structured in a way that ensures they are well-equipped to handle the challenges and responsibilities that come with being at the forefront of technological innovation.

What is Jensen Huang's take on the potential dangers and ethical considerations of AI?

While Huang acknowledges the remarkable progress in AI, he also recognizes the potential dangers and the need for careful management. He mentions that AI is an autonomous system that needs to be properly designed, tested, and monitored for safety. He advocates for applying first principles of autonomous systems to AI to ensure responsible development and use.

How does Jensen Huang describe the relationship between Nvidia and companies that use its GPUs?

Huang describes the relationship as a 'frenemy' situation, where companies are both desperate for Nvidia's GPUs and simultaneously trying to build their own. This dynamic highlights the competitive nature of the industry and the constant drive for innovation and self-sufficiency.

What is Jensen Huang's opinion on the possibility of achieving artificial general intelligence (AGI) within the next decade?

Huang believes that it is possible to achieve AGI within the next ten years, depending on the definition used. He suggests that within the next five years, AI systems will be developed that can pass basic intelligence tests and deliver results competitive with those of a normal human.

How does Jensen Huang approach the challenge of maintaining Nvidia's position in the face of increasing competition?

Huang maintains a mindset of constant vigilance and a focus on innovation. He believes in keeping the company agile and responsive to changes in the industry by ensuring that there are as few layers as possible within the company and that information remains fluid. This approach helps Nvidia stay ahead in the rapidly evolving tech landscape.

What are Jensen Huang's thoughts on the recent developments at OpenAI and the importance of corporate governance?

While Huang does not comment specifically on the internal dynamics at OpenAI, he does stress the importance of good corporate governance. He mentions that Nvidia has faced adversity but has thrived due to its strong corporate structure, which he is proud of and believes is crucial for any company in the tech industry.

How does Jensen Huang view the geopolitical implications of chip technology and the export restrictions to China?

Huang acknowledges the complexity of the situation, recognizing the need to balance national security concerns with the desire to lead in technology innovation. He suggests that while striving for supply chain independence is challenging, it is an important goal. However, he also notes the potential for creating competitors if technology export is restricted.

What is Jensen Huang's management philosophy regarding having a large number of direct reports?

Huang believes that direct reports to the CEO should be highly skilled and require minimal management. He sees having many direct reports as a way to reduce layers within the company, ensuring information is fluid and everyone is empowered and informed. This approach aligns the company and allows for better performance.

Outlines

00:00

🚀 The Rise of Nvidia and AI Revolution

This paragraph introduces Jensen Huang, the founder and CEO of Nvidia, and discusses the significant role his company plays in the field of artificial intelligence. Nvidia is highlighted as a clear leader in AI, powering various technologies from Google's AI programs to other significant matters. Huang's journey from founding Nvidia in 1993 to making it the world's most valuable semiconductor company is detailed, with a focus on the development of the first AI supercomputer, DGX, which was delivered to Elon Musk, a co-founder of OpenAI. The conversation touches on the importance of corporate governance and the potential for AI to change computing and software development.

05:01

🤖 AI's Evolution and Future Prospects

The discussion delves into the evolution of AI, particularly the impact of the AlexNet breakthrough and how it led to a new understanding of the potential of AI in computing. The conversation explores the limitations of current AI capabilities, such as the inability to reason in a multi-step process like humans. The future of AI is also discussed, with Huang predicting the advent of artificial general intelligence (AGI) within a decade, depending on the definition. The role of AI in chip design and the importance of AI in various industries, including healthcare, are also touched upon, highlighting the potential for specialized AI applications.

10:01

🌐 Geopolitical Concerns and AI's Role

This segment addresses the geopolitical implications of AI and the technology sector. The conversation revolves around the need for proper governance and the role of not-for-profit entities in the AI space. The importance of ensuring safety and proper testing of autonomous systems, including AI, is emphasized. The discussion also explores the competition and collaboration between companies using Nvidia's chips and those looking to develop their own technologies. The potential convergence of AI technologies and the unique value propositions of different companies in the AI space are also considered.

15:02

🏭 The Challenge of Supply Chain Independence

The focus shifts to the challenges of achieving supply chain independence in the semiconductor industry, particularly in relation to China. The conversation highlights the complexities of the global supply chain and the impact of U.S. regulations on exporting certain types of chips to China. Huang shares his views on the balance between national security and business interests, emphasizing the need for regulations that protect critical technology while allowing for business growth. The segment also touches on the surprising advancements in chip technology by Chinese companies like Huawei and the potential for global competition in the semiconductor industry.

20:04

🧠 Leadership and the Entrepreneurial Mindset

Huang's leadership philosophy and his approach to managing a successful company are explored in this paragraph. Despite the success of Nvidia, Huang maintains a sense of urgency and vigilance, akin to the 'only the paranoid survive' mantra. He discusses his preference for a lean management style, where direct reports are highly skilled and require minimal oversight. The conversation also delves into the challenges and hardships of entrepreneurship, with Huang reflecting on the immense effort and setbacks involved in building a company. He concludes with a piece of advice for entrepreneurs: to maintain a sense of wonder and courage, but also to recognize the true difficulty of the path they've chosen.

25:04

🔋 The Next Generation of Computing and AI Chips

The final paragraph discusses the revolutionary changes in the computing industry due to AI and deep learning. Huang explains that AI isn't just about designing a new chip, but rather a complete reinvention of how computers function, from software development to networking and chip design. The shift from a retrieval-based model to a generation-based model in computing is highlighted. The conversation also touches on the significant changes required in data centers worldwide and the beginning of a new era in computing, marking the most significant reinvention of the industry in 60 years.

Keywords

💡A.I. (Artificial Intelligence)

Artificial Intelligence (A.I.) refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. In the video, A.I. is the central theme, with discussions about its future, the role of Nvidia in powering A.I. technologies, and the ethical considerations surrounding its development and use.

💡Nvidia

Nvidia is a leading technology company known for its graphics processing units (GPUs) and artificial intelligence technologies. The company's role in the A.I. revolution is highlighted, as it powers various A.I. applications and has become the world's most valuable semiconductor company.

💡DGX

DGX, or Nvidia DGX, refers to a series of AI supercomputers designed by Nvidia for a wide range of complex computational tasks. In the script, Jensen Huang mentions delivering the first AI supercomputer, a DGX, to Elon Musk, emphasizing its significance in the development of A.I.

💡

💡OpenAI

OpenAI is a research laboratory that focuses on creating and promoting friendly artificial general intelligence. The script discusses the company's governance issues and its relationship with Nvidia, as it was one of the early adopters of Nvidia's AI technology.

💡Autonomous Systems

Autonomous systems are computer-controlled components that operate independently without direct human supervision. They are integral to the discussion on A.I., as they encompass self-driving cars, robots in factories, and autopilot systems in aviation. The script touches on the importance of safety and governance in the development of these systems.

💡AGI (Artificial General Intelligence)

Artificial General Intelligence refers to highly autonomous systems that can outperform humans at most economically valuable work. The script explores the concept of AGI and the timeline for its development, with Jensen Huang suggesting that certain forms of AGI could be achieved within the next five years.

💡Chip Independence

Chip independence refers to the ability of a country or region to manufacture and supply its own semiconductor chips without reliance on external sources. The script discusses the geopolitical implications of chip manufacturing, particularly the U.S.'s efforts to reduce its dependence on foreign chip suppliers like TSMC in Taiwan.

💡Geopolitics

Geopolitics is the study of the effects of geography on international politics and international relations. The video touches on the geopolitical aspects of A.I. and chip manufacturing, including the U.S.'s regulations on exporting certain types of chips to China and the potential for creating local competition.

💡Supply Chain

A supply chain is the network of organizations, people, activities, information, and resources involved in producing and delivering a product or service. The script mentions the complexity of the supply chain for Nvidia's products, particularly the reliance on TSMC for certain components, and the challenges of achieving complete supply chain independence.

💡Corporate Governance

Corporate governance involves the laws, rules, and practices that regulate how a company is directed and controlled. The script highlights the importance of corporate governance, especially in the context of rapidly evolving and powerful technologies like A.I.

💡Innovation

Innovation refers to the process of generating new ideas, devices, or methods. In the context of the video, innovation is a key driver in the advancement of A.I. and semiconductor technology, with discussions on how companies like Nvidia continue to push the boundaries of what's possible.

Highlights

Jensen Huang, founder and CEO of Nvidia, discusses the future of AI at the DealBook Summit 2023.

Nvidia is considered the clear winner in the world of artificial intelligence, powering everything from open AI to Google's programs.

Jensen Huang founded Nvidia in 1993, and under his leadership, it has become the world's most valuable semiconductor company.

Nvidia's market cap reached $240 billion, a 240% increase within a year.

Huang delivered the world's first AI supercomputer, named DGX, to Elon Musk, co-founder of OpenAI.

The DGX supercomputer took five years to make, weighs 70 pounds, and contains 35,000 parts, with 8 of those chips coming from TSMC.

Huang's vision for AI's impact on computing was spot on; it has changed how software is written and the types of applications that can be created.

Nvidia's chips are designed with the assistance of AI, highlighting the intertwined relationship between technology and intelligence.

Huang predicts that within five years, AI will be able to achieve results on basic intelligence tests that are competitive with normal human performance.

The importance of corporate governance is discussed, with Huang emphasizing the need for proper company architecture, especially in the AI industry.

Huang shares his thoughts on the recent changes at OpenAI, expressing hope that the company is now settled and can continue its important work.

The potential dangers of AI are acknowledged, and Huang discusses the need for proper testing, stress testing, and monitoring of autonomous systems.

Huang's perspective on the competition in the AI space, emphasizing that off-the-shelf AI will be good for solving many problems, but specialized AI will emerge for specific industries.

The geopolitical implications of chip technology and export restrictions to China are discussed, with Huang noting the complexity of the issue.

Huang talks about the challenge of achieving supply chain independence in the semiconductor industry, estimating we are one to two decades away from it.

The impact of regulations on Nvidia's business, particularly in relation to exporting chip technology to China, is examined.

Huang reflects on the hardships of building a company from the ground up and the importance of maintaining a sense of urgency and focus despite success.

The concept of 'paranoia' in business is discussed, with Huang crediting Andy Grove's philosophy of 'only the paranoid survive' but also noting the importance of a balanced approach.

Huang's management style is explored, with him having 50 direct reports and a philosophy that they require minimal management due to their expertise and skill.

In reflecting on his journey, Huang expresses that while the success is worth it, he might not have taken the plunge knowing the hardships that lay ahead.

Huang concludes by emphasizing the reinvention of the computer industry due to AI and deep learning, predicting a new generation of computing that hasn't been seen in 60 years.