Nvidia's Huang Says Neoclouds Are 'Good Investment'
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Author: Bloomberg Television · Watch on YouTube
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Original language: English
Original video: Nvidia’s Huang Says Neoclouds Are ‘Good Investment’ · Channel: Bloomberg Television · 02:08 · Watch on YouTube
Topics: AI infrastructure and hardware, Markets and economy
Summary
Section titled “Summary”Jensen Huang says Nvidia invested in neocloud companies because he considers them a good investment, distinguishing investment from broader backing. He points to strong demand for their computing capacity and contracts with large and small companies, saying they are sold out. That demand means the companies need more land, power, computing resources, and working capital, amid rising capital costs. Huang argues the pressure reflects high demand for AI and is confident the neoclouds will find working-capital solutions.
Key points
Section titled “Key points”- Huang distinguishes Nvidia’s investments in neoclouds from backing them more broadly.
- He says Nvidia invested because he considers the neoclouds a good investment.
- Huang describes demand for neocloud computing as incredible.
- He says the companies have contracts with both large and small customers and are sold out.
- Meeting demand requires securing more land, power, and computing capacity.
- The companies need additional capital, particularly working capital.
- Huang links high demand for capital to high demand for computers and AI.
- He characterizes the issue as demand-driven rather than a structural problem.
- Huang is confident the neoclouds will find solutions, citing their customers and demand.
Chapters
Section titled “Chapters”| Start | Chapter | Summary |
|---|---|---|
| 00:00 | Questions about Nvidia’s support for neoclouds | The interviewer asks how far Nvidia would go to support neocloud companies facing greater scrutiny and higher capital costs. |
| 00:32 | Huang explains Nvidia’s investments | Huang distinguishes investing in neoclouds from backing them and cites strong demand, customer contracts, and sold-out capacity. |
| 01:05 | Demand and working-capital needs | Huang says the companies need more land, power, computing capacity, and working capital to meet their contracted demand. |
| 01:36 | High AI demand and confidence in solutions | Huang says capital needs are driven by high demand for computing and AI, and expresses confidence that working capital will be found. |
Quotes
Section titled “Quotes”I think it’s a good investment. — 00:32
They’re completely sold out now. — 00:32
the core of this is demand. — 01:36
You can’t solve the absence of demand. — 02:08
And working capital will come. — 02:08
Concepts and entities
Section titled “Concepts and entities”Jensen Huang, NVIDIA, neoclouds, Firmus, CoreWeave, capital de giro
Full transcript (original language)
Section titled “Full transcript (original language)”00:00 Jensen we’re obviously in this environment where the cost of capital has increased, and as a result, investors are increasingly scrutinizing the business models, the balance sheets of the neo clouds. And clearly that is creating some headwinds, whether it’s Firmus, or CoreWeave or You’ve backed a lot of these companies financially, rhetorically, financially. So my question is how far is Nvidia prepared to go to back neo clouds? How much further could you go in extending your balance sheet to support those companies? Would you ever, if it came to it, bail out one of these companies?
00:32 Or is it time for Neo clouds to stand on their own two feet? One. We invested in them. Um, that’s different than backing them. Uh, we invested in them because I think it’s a good investment. I can prove it. Uh, the reason for that is because all of the neo clouds, their demands are incredible. The demand of their compute is incredible. And the contracts. They have contracts from large companies. Small companies. Their demand. They’re completely sold out now.
01:05 That translates, however, to needing to, uh, uh, secure more land. power shell, needing to secure more compute, which is therefore needing more capital. More working capital. Their total. Their company’s total contracted value is incredible. All of theirs because the demand is great. And so they need working capital. Now, you just mentioned that because the demand for capital
01:36 is so high that interest rates are starting to go up. But remember, what you just said is because demand for capital is so high. Now, the reason why is the demand for capital is so high, because the demand for computers so high, because demand for AI is so high. That’s what’s driving it. Isn’t that right? Okay. But remember, at the core of this, the core of this is demand. This is a different it’s not a it’s not a structural issue aside from the demand
02:08 is incredibly high. We always love when demands high. Everything else will get solved when demand is high. You can’t solve the absence of demand. But when demand is high, everything else will get taken care of. And so I am quite confident that, uh, they will find solutions. And their solution starts with the fact that they have excellent customers. Demand is really high and they just need working capital. And working capital will come. It gets solved.