1 00:00:02,520 --> 00:00:07,400 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,840 --> 00:00:10,560 Speaker 2: Let's bring in and video CEO Jensen Wang following the 3 00:00:10,560 --> 00:00:14,240 Speaker 2: company's earnings and analysts call Jensen, thank you for your 4 00:00:14,280 --> 00:00:18,520 Speaker 2: time here on Bloomberg Technology. You went into great detail 5 00:00:19,040 --> 00:00:22,239 Speaker 2: about what's happening, particularly in China. I just wanted to 6 00:00:22,239 --> 00:00:24,479 Speaker 2: go over something that I felt wasn't asked, which is 7 00:00:25,239 --> 00:00:28,639 Speaker 2: fiscal second quarter sales forty five billion dollars plus or 8 00:00:28,680 --> 00:00:33,240 Speaker 2: minus two percent eight billion dollars of lost revenue opportunity, 9 00:00:33,520 --> 00:00:36,960 Speaker 2: specifically relating to China in eight twenty. It seems as 10 00:00:37,000 --> 00:00:40,640 Speaker 2: if you made up somewhere some demand for a different product, 11 00:00:40,760 --> 00:00:43,240 Speaker 2: or from a different geography, or from a different corner 12 00:00:43,240 --> 00:00:43,959 Speaker 2: of the market. 13 00:00:44,240 --> 00:00:47,479 Speaker 1: What was that, Well, we got a. 14 00:00:47,440 --> 00:00:50,880 Speaker 3: Whole bunch of engines firing right now. The biggest one, 15 00:00:50,880 --> 00:00:55,160 Speaker 3: of course, is the reasoning AI inference. The demand is 16 00:00:55,240 --> 00:01:00,320 Speaker 3: just after the charts, you see the popularity of all 17 00:01:00,360 --> 00:01:04,320 Speaker 3: these AI services now Chat, GBT, Gemini, you know, so 18 00:01:04,400 --> 00:01:06,360 Speaker 3: on and so forth, GROC. I mean, they're just doing 19 00:01:06,400 --> 00:01:09,679 Speaker 3: incredibly well across the board, and all of the APIs 20 00:01:09,720 --> 00:01:12,679 Speaker 3: that they serve out and all the agentic AI services 21 00:01:12,680 --> 00:01:15,160 Speaker 3: that are built on top of them, they're all doing 22 00:01:15,240 --> 00:01:18,480 Speaker 3: incredibly well. I think that there's just a giant breakthrough 23 00:01:19,040 --> 00:01:24,840 Speaker 3: in AI's capability, and inferencing has just become a giant workload. Second, 24 00:01:25,640 --> 00:01:28,120 Speaker 3: people realize that Blackwell is just a home run envey 25 00:01:28,160 --> 00:01:31,000 Speaker 3: Link seventy two is a home run architecture. We designed 26 00:01:31,040 --> 00:01:34,120 Speaker 3: it to be a thinking machine, a reasoning AI system. 27 00:01:34,440 --> 00:01:38,720 Speaker 3: And I think people now the confluence of the breakthrough 28 00:01:38,760 --> 00:01:42,600 Speaker 3: and reasoning AI and the availability you know now the 29 00:01:42,640 --> 00:01:46,240 Speaker 3: emergence of Grace Blackwell and VEALINGK seventy two perfect timing. 30 00:01:46,520 --> 00:01:49,800 Speaker 1: I think that that's at the core a big part 31 00:01:49,840 --> 00:01:50,000 Speaker 1: of it. 32 00:01:50,040 --> 00:01:51,880 Speaker 3: And the second part of it is that our supply 33 00:01:51,960 --> 00:01:54,320 Speaker 3: chain is growing and we're really ramping it up and 34 00:01:54,360 --> 00:01:57,560 Speaker 3: they're doing fantastically for us, and so all of these 35 00:01:57,560 --> 00:01:58,720 Speaker 3: things are all coming together. 36 00:01:59,560 --> 00:02:01,440 Speaker 2: And so it is fair to say that some of 37 00:02:01,480 --> 00:02:04,600 Speaker 2: that additional supply on Blackwell and the demand for black 38 00:02:04,640 --> 00:02:08,239 Speaker 2: Bell kind of made up for the opportunity lost in China, 39 00:02:08,280 --> 00:02:10,560 Speaker 2: at least in the outlook for this current period. 40 00:02:12,280 --> 00:02:13,040 Speaker 1: Yeah, I guess so. 41 00:02:13,280 --> 00:02:17,200 Speaker 3: But you know, you just can't you can't underestimate the 42 00:02:17,240 --> 00:02:21,560 Speaker 3: importance of the China market. This is the second largest 43 00:02:21,639 --> 00:02:25,800 Speaker 3: AI market, This is the home of the world's largest 44 00:02:25,800 --> 00:02:29,880 Speaker 3: population of AI researchers, and we want all of the 45 00:02:29,919 --> 00:02:32,680 Speaker 3: world's AI researchers and all of the world's developers to 46 00:02:32,680 --> 00:02:36,639 Speaker 3: be building on American stacks. And so, you know, irrespective 47 00:02:36,680 --> 00:02:41,080 Speaker 3: of the nearer term revenue success that we have, we 48 00:02:41,120 --> 00:02:43,800 Speaker 3: can't ignore the fact that the Chinese market is very important. 49 00:02:44,880 --> 00:02:48,480 Speaker 2: You explained again in some detail that at least in 50 00:02:48,520 --> 00:02:52,239 Speaker 2: the Hopper architecture you have engineered down to the lowest 51 00:02:52,280 --> 00:02:56,320 Speaker 2: spec possible. It's not possible to do anything different with 52 00:02:56,440 --> 00:03:00,480 Speaker 2: Hopper for the Chinese market. But in your conceit iteration 53 00:03:00,760 --> 00:03:04,000 Speaker 2: for a different architecture or a chip for the Chinese market, 54 00:03:04,440 --> 00:03:06,880 Speaker 2: is that what we're talking about? A new design or 55 00:03:06,919 --> 00:03:10,400 Speaker 2: new class? And have you made that proposal to the administration? 56 00:03:10,720 --> 00:03:12,880 Speaker 2: Just designing from the ground up and new chip. 57 00:03:13,480 --> 00:03:15,000 Speaker 1: We're still thinking through that. 58 00:03:15,840 --> 00:03:21,440 Speaker 3: They're just the limitations are quite quite stringent, quite limited, 59 00:03:21,480 --> 00:03:22,000 Speaker 3: if you will. 60 00:03:22,919 --> 00:03:23,760 Speaker 1: H twenty is. 61 00:03:25,760 --> 00:03:28,160 Speaker 3: You know, as far down as we could take a Hopper, 62 00:03:28,639 --> 00:03:30,919 Speaker 3: we don't know how to make it even even less, 63 00:03:31,520 --> 00:03:35,680 Speaker 3: and so that's really the limit. But but so there 64 00:03:35,680 --> 00:03:39,080 Speaker 3: aren't there aren't you know, the limitations are quite stringent. 65 00:03:39,200 --> 00:03:40,920 Speaker 1: So we have we have to really think through it. 66 00:03:41,560 --> 00:03:44,680 Speaker 3: Whatever we make ultimately has to add value to the market. 67 00:03:44,960 --> 00:03:48,560 Speaker 3: And so it's it's a really tight rope because because 68 00:03:49,320 --> 00:03:53,360 Speaker 3: the Chinese competitors have evolved and advanced greatly over the 69 00:03:53,400 --> 00:03:57,600 Speaker 3: last year like everybody else, they're you know, doubling, quadrupling 70 00:03:57,600 --> 00:04:01,760 Speaker 3: their capabilities every year, and the vlume is increasing substantially. 71 00:04:01,800 --> 00:04:03,960 Speaker 3: And remember these are data center chips. They don't have 72 00:04:04,040 --> 00:04:07,920 Speaker 3: to be small, they could be quite large and and 73 00:04:07,600 --> 00:04:13,280 Speaker 3: and you know they without American technology, UH, the availability 74 00:04:13,280 --> 00:04:16,960 Speaker 3: of Chinese technology will fail the market. And so you know, 75 00:04:16,960 --> 00:04:19,680 Speaker 3: we whatever we offer has to at least at least 76 00:04:19,760 --> 00:04:22,159 Speaker 3: be competitive and has to add value to the market. 77 00:04:23,440 --> 00:04:27,440 Speaker 2: Tensen, Does Huawei have an AI accelerator or a GPU 78 00:04:27,600 --> 00:04:31,080 Speaker 2: that is performance is H twenty or is performance of 79 00:04:31,120 --> 00:04:33,200 Speaker 2: other classes of GPU that you make? 80 00:04:35,120 --> 00:04:39,039 Speaker 3: Uh, Huawei's technology based on based on our our best 81 00:04:39,200 --> 00:04:41,560 Speaker 3: understanding at the moment, UH, and we have a lot 82 00:04:41,560 --> 00:04:45,719 Speaker 3: of ground truth there is probably comparable to an age 83 00:04:45,800 --> 00:04:50,520 Speaker 3: two hundred and so they're they're they've been moving quite 84 00:04:50,600 --> 00:04:55,320 Speaker 3: fast and and they've also offered UH this news system called. 85 00:04:55,120 --> 00:04:59,520 Speaker 1: Cloud Matrix UH that is that is scales. 86 00:04:59,160 --> 00:05:02,320 Speaker 3: Up to even a larger system than our latest generation 87 00:05:02,440 --> 00:05:06,360 Speaker 3: Grace Blackwell and so there. Huawei, as you know, is 88 00:05:06,400 --> 00:05:09,359 Speaker 3: a formidable technology company and they're not sitting still and 89 00:05:09,400 --> 00:05:12,400 Speaker 3: they look for ways to look for ways to compete, 90 00:05:12,880 --> 00:05:14,920 Speaker 3: and they're quite formidable. 91 00:05:17,000 --> 00:05:19,440 Speaker 2: With that in mind, you've kind of explained the landscape 92 00:05:19,480 --> 00:05:22,200 Speaker 2: now in Vidia's ability to operate in China. I mean, 93 00:05:22,240 --> 00:05:24,320 Speaker 2: you and I this year alone have already discussed the 94 00:05:24,360 --> 00:05:28,080 Speaker 2: idea that they're fifty percent of the world's AI researchers 95 00:05:28,520 --> 00:05:31,239 Speaker 2: in or from China. But are you having a sense 96 00:05:31,279 --> 00:05:34,640 Speaker 2: of the vacuum created that those big names I think 97 00:05:34,680 --> 00:05:36,880 Speaker 2: about ten Cent or Ali Baba or by Do that 98 00:05:36,920 --> 00:05:40,200 Speaker 2: were buyers of age twenty that they've already pivoted and 99 00:05:40,279 --> 00:05:44,839 Speaker 2: turned to the offering from Huawei because of the policy 100 00:05:44,880 --> 00:05:45,599 Speaker 2: that is in place. 101 00:05:47,279 --> 00:05:49,880 Speaker 3: Yeah, they have no choice, but to you know, of 102 00:05:49,960 --> 00:05:52,919 Speaker 3: our one of the one of the challenges of the 103 00:05:53,040 --> 00:05:57,480 Speaker 3: changing regulations is the ability for markets to trust the 104 00:05:57,600 --> 00:06:03,080 Speaker 3: Nvidia and ultimately emerge CAN platforms and so so, Uh, 105 00:06:03,400 --> 00:06:08,080 Speaker 3: it's prudent I think for the Chinese customers uh to 106 00:06:08,240 --> 00:06:12,000 Speaker 3: make sure that they they develop their stack on Huawei 107 00:06:12,600 --> 00:06:16,480 Speaker 3: and because it's hard to rely on American technology at 108 00:06:16,480 --> 00:06:18,560 Speaker 3: this point, and so that's one of the that's one 109 00:06:18,560 --> 00:06:22,680 Speaker 3: of the the unfortunate, unfortunate parts of of changing policies. 110 00:06:24,320 --> 00:06:28,000 Speaker 3: But anyhow, you know, I have every confidence that that 111 00:06:28,200 --> 00:06:32,440 Speaker 3: if able to compete, American companies will compete. This is 112 00:06:32,800 --> 00:06:36,960 Speaker 3: in a to to uh uh, to write off American 113 00:06:37,000 --> 00:06:39,800 Speaker 3: technology companies is not smart. 114 00:06:39,800 --> 00:06:43,040 Speaker 1: This is this is the home of of of. 115 00:06:42,920 --> 00:06:46,560 Speaker 3: Some of the brightest computer scientists in the world. American 116 00:06:46,600 --> 00:06:49,880 Speaker 3: companies are incredibly competitive. We just have to have the 117 00:06:49,880 --> 00:06:52,240 Speaker 3: confidence to go compete, and if we have the confidence 118 00:06:52,240 --> 00:06:53,159 Speaker 3: to compete, we will win. 119 00:06:54,960 --> 00:06:58,040 Speaker 2: You said during the ending school that you trust President 120 00:06:58,080 --> 00:07:01,599 Speaker 2: Trump and that the president has an vision and a plan. 121 00:07:02,080 --> 00:07:04,120 Speaker 2: Could I ask if you've talked to him about that 122 00:07:04,279 --> 00:07:08,560 Speaker 2: plan and if it includes coordinating with Nvidia on policy 123 00:07:08,560 --> 00:07:12,720 Speaker 2: adjustment that relates to changes in technology export controls. 124 00:07:13,960 --> 00:07:17,120 Speaker 3: Well, obviously I don't know all of his ideas, but 125 00:07:17,240 --> 00:07:20,000 Speaker 3: let me tell you about two that are incredible. The 126 00:07:20,040 --> 00:07:24,600 Speaker 3: first one is utterly visionary, the idea of tariffs being 127 00:07:24,640 --> 00:07:30,080 Speaker 3: a pillar of a bold vision to reindustrialize to onshore 128 00:07:30,160 --> 00:07:35,400 Speaker 3: manufacturing and motivate the world to invest in the United States. 129 00:07:35,840 --> 00:07:38,880 Speaker 3: And it's just an incredible vision. I think this is 130 00:07:38,920 --> 00:07:41,880 Speaker 3: going to be a transformative idea for the next century 131 00:07:41,880 --> 00:07:44,880 Speaker 3: for us. We're all in on the idea where we're 132 00:07:45,120 --> 00:07:48,280 Speaker 3: setting up plants and encouraging our partners from around the 133 00:07:48,320 --> 00:07:50,280 Speaker 3: world to invest the United States, and we have a 134 00:07:50,280 --> 00:07:52,640 Speaker 3: lot of stuff going on, and so I'm very excited 135 00:07:52,640 --> 00:07:55,800 Speaker 3: about that. The second, the second major idea is to 136 00:07:55,880 --> 00:07:59,800 Speaker 3: we send the AI Diffusion Rule, recognizing that this is 137 00:07:59,800 --> 00:08:04,600 Speaker 3: an about limiting American technology, but this is about accelerating 138 00:08:04,800 --> 00:08:08,320 Speaker 3: American stacks around the world to make sure that before 139 00:08:08,360 --> 00:08:11,960 Speaker 3: it's too late, that the world builds on American stacks 140 00:08:12,360 --> 00:08:16,960 Speaker 3: during this extraordinary time the era. And so these two 141 00:08:17,040 --> 00:08:20,480 Speaker 3: initiatives are completely visionary and it's going to be transformative 142 00:08:20,480 --> 00:08:21,040 Speaker 3: for America. 143 00:08:22,480 --> 00:08:24,200 Speaker 2: Jensen. In the time that you and I have been 144 00:08:24,320 --> 00:08:26,960 Speaker 2: on air having this conversation, some news is broken from 145 00:08:27,120 --> 00:08:30,040 Speaker 2: US Secretary of State Rubio who has said that the 146 00:08:30,120 --> 00:08:34,440 Speaker 2: US will begin revoking some Chinese student visas. What I 147 00:08:34,480 --> 00:08:37,520 Speaker 2: wanted to ask you is that with US government limits 148 00:08:37,600 --> 00:08:40,920 Speaker 2: on foreign student visas, how does that impact a company 149 00:08:41,080 --> 00:08:44,800 Speaker 2: like Nvidia. I think about the size but also composition 150 00:08:44,880 --> 00:08:48,199 Speaker 2: of your engineering talent here in California and elsewhere in 151 00:08:48,240 --> 00:08:49,160 Speaker 2: the United States. 152 00:08:52,400 --> 00:08:56,440 Speaker 3: I believe the administration still feels very strongly about about 153 00:08:57,640 --> 00:08:59,480 Speaker 3: the incredible importance of immigration. 154 00:09:00,160 --> 00:09:01,360 Speaker 1: Look, I'm an immigrant. 155 00:09:01,840 --> 00:09:04,520 Speaker 3: Uh. I know many immigrants that that came and came 156 00:09:04,559 --> 00:09:07,120 Speaker 3: to United States to to build a great life. And 157 00:09:07,240 --> 00:09:10,840 Speaker 3: many of us, many of us have contributed greatly to 158 00:09:10,920 --> 00:09:13,719 Speaker 3: the technology industry and and uh in. 159 00:09:13,760 --> 00:09:16,560 Speaker 1: The United States. I believe that that's going to have 160 00:09:16,600 --> 00:09:18,120 Speaker 1: to continue. Uh. 161 00:09:18,679 --> 00:09:22,040 Speaker 3: Remember, remember, you know, people from all over the world 162 00:09:22,120 --> 00:09:24,640 Speaker 3: want to come to United States. This is just such 163 00:09:24,640 --> 00:09:27,679 Speaker 3: an extraordinary country with such incredible opportunities. 164 00:09:28,080 --> 00:09:29,600 Speaker 1: We want the brightest to come here. 165 00:09:29,800 --> 00:09:32,160 Speaker 3: We don't want we don't want others to you know, 166 00:09:32,200 --> 00:09:34,360 Speaker 3: we we don't want everybody to be able to come here. 167 00:09:34,640 --> 00:09:37,160 Speaker 3: And there should be there should be rules and and 168 00:09:37,960 --> 00:09:40,559 Speaker 3: but nonetheless for the ones that that really can make 169 00:09:40,559 --> 00:09:43,079 Speaker 3: a contribution, want to make a difference, and we want 170 00:09:43,120 --> 00:09:45,200 Speaker 3: to make it possible for them to come here and 171 00:09:45,200 --> 00:09:47,880 Speaker 3: and bring their great ideas, bring their great intellect and 172 00:09:48,120 --> 00:09:50,320 Speaker 3: help us build in a great America. And so I 173 00:09:50,360 --> 00:09:52,439 Speaker 3: think I think the administration is all in on that, 174 00:09:52,520 --> 00:09:55,200 Speaker 3: and I don't think anything that they've said changes that. 175 00:09:56,400 --> 00:09:59,520 Speaker 2: Jensen I surveyed our Bloomberg Technology audience around the world 176 00:09:59,600 --> 00:10:02,160 Speaker 2: for questions for you, and I think the most common 177 00:10:02,240 --> 00:10:07,240 Speaker 2: question is understanding who Nvidia's customers are away from the hyperscalers, 178 00:10:07,520 --> 00:10:11,720 Speaker 2: but actually many questions about Elon Inc. And whether Tesla 179 00:10:11,880 --> 00:10:15,280 Speaker 2: and Xai and Aggregate might actually be one of the 180 00:10:15,280 --> 00:10:17,480 Speaker 2: biggest customers you have. You think about not just the 181 00:10:17,559 --> 00:10:22,400 Speaker 2: data center chips, but this chip specific for optimists or 182 00:10:22,400 --> 00:10:25,000 Speaker 2: in the cars, the omniverse component. 183 00:10:25,040 --> 00:10:29,040 Speaker 1: Could you speak a little about that. We do. 184 00:10:29,320 --> 00:10:34,840 Speaker 3: We do a lot of business with Tesla and Xai Elons. Elons, 185 00:10:35,200 --> 00:10:38,440 Speaker 3: as you know, is just an extraordinary engineer and I 186 00:10:38,480 --> 00:10:41,640 Speaker 3: love working with him. We've built some amazing computers together. 187 00:10:41,800 --> 00:10:46,200 Speaker 3: We're going to build many more computers together. And the 188 00:10:46,200 --> 00:10:51,080 Speaker 3: work that he's doing in groc his self driving car, 189 00:10:52,480 --> 00:10:55,920 Speaker 3: his optimists, these are these are all, every single one 190 00:10:55,920 --> 00:10:58,880 Speaker 3: of them world class, every single one of them revolutionary, 191 00:10:58,920 --> 00:11:01,840 Speaker 3: every single one of them are going to be gigantic opportunities, 192 00:11:01,840 --> 00:11:05,920 Speaker 3: and we're delighted. I'm delighted to be working with him 193 00:11:05,920 --> 00:11:06,160 Speaker 3: on that. 194 00:11:06,320 --> 00:11:08,080 Speaker 1: And so I think the. 195 00:11:10,240 --> 00:11:13,839 Speaker 3: The optimist opportunities just right around the corner. It's very 196 00:11:13,960 --> 00:11:17,480 Speaker 3: likely that human robots are are going to be robots 197 00:11:17,480 --> 00:11:22,360 Speaker 3: that we can deploy into the world relatively easily. And 198 00:11:22,720 --> 00:11:25,120 Speaker 3: this is the first robot that really has a chance 199 00:11:25,559 --> 00:11:29,760 Speaker 3: to achieve the high volume and technology scale necessary to 200 00:11:29,800 --> 00:11:30,760 Speaker 3: advance technology. 201 00:11:30,800 --> 00:11:32,560 Speaker 1: And so I think this. 202 00:11:32,440 --> 00:11:35,520 Speaker 3: Is likely to be the next multi trillion dollar industry. 203 00:11:35,920 --> 00:11:36,959 Speaker 1: I'm very excited for him. 204 00:11:37,960 --> 00:11:41,000 Speaker 2: Tensen. Let's end by talking about Europe. You alluded to 205 00:11:41,040 --> 00:11:44,080 Speaker 2: a trip you're taking next week. It sounds as if 206 00:11:44,120 --> 00:11:48,040 Speaker 2: the infrastructure build out in Europe is coming. Where will 207 00:11:48,080 --> 00:11:49,840 Speaker 2: you be visiting and who we be speaking with? 208 00:11:51,200 --> 00:11:54,040 Speaker 3: Well, I'm going to leave the who as a surprise 209 00:11:54,120 --> 00:11:56,920 Speaker 3: for all of you, but I'll be seeing lots of 210 00:11:57,440 --> 00:12:00,960 Speaker 3: heads of states, and I'll be in France, in UK 211 00:12:01,240 --> 00:12:06,920 Speaker 3: and Germany, UH and UH Belgium, and and I think 212 00:12:06,920 --> 00:12:11,200 Speaker 3: that that the the It's very clear now that every 213 00:12:11,280 --> 00:12:16,720 Speaker 3: under every country recognizes that artificial intelligence, like electricity, like internet, 214 00:12:16,800 --> 00:12:20,800 Speaker 3: like communications, is part of a national infrastructure. No, no 215 00:12:21,000 --> 00:12:24,640 Speaker 3: society could do without intelligence, as you know, And and 216 00:12:24,920 --> 00:12:28,360 Speaker 3: there's an awakening that every country has to has to 217 00:12:28,400 --> 00:12:32,360 Speaker 3: take some initiative to ensure that that their country and 218 00:12:32,400 --> 00:12:36,400 Speaker 3: their society has access to artificial intelligence. And so we're 219 00:12:36,440 --> 00:12:39,000 Speaker 3: we're really delighted to be able to to work with 220 00:12:39,160 --> 00:12:43,000 Speaker 3: uh uh uh uh. You know, work with the European 221 00:12:43,520 --> 00:12:47,679 Speaker 3: UH countries to to bring AI infrastructure to them and 222 00:12:48,200 --> 00:12:50,880 Speaker 3: work with them to build AI factories. There's an UN 223 00:12:51,000 --> 00:12:55,240 Speaker 3: team number of AI factory projects in discussion and development 224 00:12:55,320 --> 00:12:58,800 Speaker 3: and and so so I'm really excited to make this trip. 225 00:12:58,840 --> 00:12:59,960 Speaker 1: We're going to be all over Europe. 226 00:13:00,040 --> 00:13:00,240 Speaker 3: MH. 227 00:13:01,600 --> 00:13:05,559 Speaker 2: Convidia CEO Jansen Wang, thank you, thank you, good to 228 00:13:05,600 --> 00:13:05,920 Speaker 2: see you.