Nvidia made $14 billion in profits in just one quarter thanks to AI chips, and is booming from now on: Nvidia CEO Jensen Huang says Nvidia will now design new chips every year instead of every two Once a year.
“I can announce that after Blackwell, there is another chip. Our cadence is one year,” Huang said during the company’s first-quarter 2025 earnings call.
So far, Nvidia has launched a new architecture approximately every two years, such as Ampere in 2020, Hopper in 2022, and Blackwell in 2024.
But analyst Ming-Chi Kuo reported earlier this month that the next architecture, “Rubin,” will launch in 2025, giving us the R100 AI GPU as soon as next year, and Huang’s comments suggest that report may be correct.
Nvidia will also speed up all other types of chips it produces to adapt to this pace, Huang said. “We’re going to take them at a really fast pace.”
“New CPUs, new GPUs, new network cards, new switches…a lot of chips are coming,” he said.
Earlier in the call, when an analyst asked him to explain how recent Blackwell GPUs can achieve growth while Hopper GPUs are still selling well, Huang explained that Nvidia’s new generation of AI GPUs are electrically and mechanically backwards compatible. , and run the same software. Customers will “easily transition from H100 to H200 to B100” in existing data centers, he said.
Jen-Hsun Huang also shared some of his sales propositions on the conference call, explaining the huge demand for Nvidia artificial intelligence GPUs:
We expect that as we transition to H200, as we transition to Blackwell, demand will exceed supply for a period of time. Everyone is eager to get their infrastructure online. The reason is they are saving money, making money, and they want to do it as quickly as possible.
He also has a FOMO argument that made me smile:
The next company to reach the next major platform will announce a breakthrough artificial intelligence, and the second company after that will announce a 0.3% improvement. Do you want to be a company that delivers breakthrough AI, or a company that delivers 0.3% better AI services?
Nvidia CFO interestingly said car will become its “largest vertical within the data center this year,” noting how Tesla purchased 35,000 H100 GPUs to train its “full self-driving” system, while “consumer internet companies” like Meta will continue to be “strong “Growing vertical industries”, “also.
