Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Let's bring in and video CEO Jensen Wang following the
Speaker 2: company's earnings and analysts call Jensen, thank you for your
Speaker 2: time here on Bloomberg Technology. You went into great detail
Speaker 2: about what's happening, particularly in China. I just wanted to
Speaker 2: go over something that I felt wasn't asked, which is
Speaker 2: fiscal second quarter sales forty five billion dollars plus or
Speaker 2: minus two percent eight billion dollars of lost revenue opportunity,
Speaker 2: specifically relating to China in eight twenty. It seems as
Speaker 2: if you made up somewhere some demand for a different product,
Speaker 2: or from a different geography, or from a different corner
Speaker 2: of the market.
Speaker 1: What was that, Well, we got a.
Speaker 3: Whole bunch of engines firing right now. The biggest one,
Speaker 3: of course, is the reasoning AI inference. The demand is
Speaker 3: just after the charts, you see the popularity of all
Speaker 3: these AI services now Chat, GBT, Gemini, you know, so
Speaker 3: on and so forth, GROC. I mean, they're just doing
Speaker 3: incredibly well across the board, and all of the APIs
Speaker 3: that they serve out and all the agentic AI services
Speaker 3: that are built on top of them, they're all doing
Speaker 3: incredibly well. I think that there's just a giant breakthrough
Speaker 3: in AI's capability, and inferencing has just become a giant workload. Second,
Speaker 3: people realize that Blackwell is just a home run envey
Speaker 3: Link seventy two is a home run architecture. We designed
Speaker 3: it to be a thinking machine, a reasoning AI system.
Speaker 3: And I think people now the confluence of the breakthrough
Speaker 3: and reasoning AI and the availability you know now the
Speaker 3: emergence of Grace Blackwell and VEALINGK seventy two perfect timing.
Speaker 1: I think that that's at the core a big part
Speaker 1: of it.
Speaker 3: And the second part of it is that our supply
Speaker 3: chain is growing and we're really ramping it up and
Speaker 3: they're doing fantastically for us, and so all of these
Speaker 3: things are all coming together.
Speaker 2: And so it is fair to say that some of
Speaker 2: that additional supply on Blackwell and the demand for black
Speaker 2: Bell kind of made up for the opportunity lost in China,
Speaker 2: at least in the outlook for this current period.
Speaker 1: Yeah, I guess so.
Speaker 3: But you know, you just can't you can't underestimate the
Speaker 3: importance of the China market. This is the second largest
Speaker 3: AI market, This is the home of the world's largest
Speaker 3: population of AI researchers, and we want all of the
Speaker 3: world's AI researchers and all of the world's developers to
Speaker 3: be building on American stacks. And so, you know, irrespective
Speaker 3: of the nearer term revenue success that we have, we
Speaker 3: can't ignore the fact that the Chinese market is very important.
Speaker 2: You explained again in some detail that at least in
Speaker 2: the Hopper architecture you have engineered down to the lowest
Speaker 2: spec possible. It's not possible to do anything different with
Speaker 2: Hopper for the Chinese market. But in your conceit iteration
Speaker 2: for a different architecture or a chip for the Chinese market,
Speaker 2: is that what we're talking about? A new design or
Speaker 2: new class? And have you made that proposal to the administration?
Speaker 2: Just designing from the ground up and new chip.
Speaker 1: We're still thinking through that.
Speaker 3: They're just the limitations are quite quite stringent, quite limited,
Speaker 3: if you will.
Speaker 1: H twenty is.
Speaker 3: You know, as far down as we could take a Hopper,
Speaker 3: we don't know how to make it even even less,
Speaker 3: and so that's really the limit. But but so there
Speaker 3: aren't there aren't you know, the limitations are quite stringent.
Speaker 1: So we have we have to really think through it.
Speaker 3: Whatever we make ultimately has to add value to the market.
Speaker 3: And so it's it's a really tight rope because because
Speaker 3: the Chinese competitors have evolved and advanced greatly over the
Speaker 3: last year like everybody else, they're you know, doubling, quadrupling
Speaker 3: their capabilities every year, and the vlume is increasing substantially.
Speaker 3: And remember these are data center chips. They don't have
Speaker 3: to be small, they could be quite large and and
Speaker 3: and you know they without American technology, UH, the availability
Speaker 3: of Chinese technology will fail the market. And so you know,
Speaker 3: we whatever we offer has to at least at least
Speaker 3: be competitive and has to add value to the market.
Speaker 2: Tensen, Does Huawei have an AI accelerator or a GPU
Speaker 2: that is performance is H twenty or is performance of
Speaker 2: other classes of GPU that you make?
Speaker 3: Uh, Huawei's technology based on based on our our best
Speaker 3: understanding at the moment, UH, and we have a lot
Speaker 3: of ground truth there is probably comparable to an age
Speaker 3: two hundred and so they're they're they've been moving quite
Speaker 3: fast and and they've also offered UH this news system called.
Speaker 1: Cloud Matrix UH that is that is scales.
Speaker 3: Up to even a larger system than our latest generation
Speaker 3: Grace Blackwell and so there. Huawei, as you know, is
Speaker 3: a formidable technology company and they're not sitting still and
Speaker 3: they look for ways to look for ways to compete,
Speaker 3: and they're quite formidable.
Speaker 2: With that in mind, you've kind of explained the landscape
Speaker 2: now in Vidia's ability to operate in China. I mean,
Speaker 2: you and I this year alone have already discussed the
Speaker 2: idea that they're fifty percent of the world's AI researchers
Speaker 2: in or from China. But are you having a sense
Speaker 2: of the vacuum created that those big names I think
Speaker 2: about ten Cent or Ali Baba or by Do that
Speaker 2: were buyers of age twenty that they've already pivoted and
Speaker 2: turned to the offering from Huawei because of the policy
Speaker 2: that is in place.
Speaker 3: Yeah, they have no choice, but to you know, of
Speaker 3: our one of the one of the challenges of the
Speaker 3: changing regulations is the ability for markets to trust the
Speaker 3: Nvidia and ultimately emerge CAN platforms and so so, Uh,
Speaker 3: it's prudent I think for the Chinese customers uh to
Speaker 3: make sure that they they develop their stack on Huawei
Speaker 3: and because it's hard to rely on American technology at
Speaker 3: this point, and so that's one of the that's one
Speaker 3: of the the unfortunate, unfortunate parts of of changing policies.
Speaker 3: But anyhow, you know, I have every confidence that that
Speaker 3: if able to compete, American companies will compete. This is
Speaker 3: in a to to uh uh, to write off American
Speaker 3: technology companies is not smart.
Speaker 1: This is this is the home of of of.
Speaker 3: Some of the brightest computer scientists in the world. American
Speaker 3: companies are incredibly competitive. We just have to have the
Speaker 3: confidence to go compete, and if we have the confidence
Speaker 3: to compete, we will win.
Speaker 2: You said during the ending school that you trust President
Speaker 2: Trump and that the president has an vision and a plan.
Speaker 2: Could I ask if you've talked to him about that
Speaker 2: plan and if it includes coordinating with Nvidia on policy
Speaker 2: adjustment that relates to changes in technology export controls.
Speaker 3: Well, obviously I don't know all of his ideas, but
Speaker 3: let me tell you about two that are incredible. The
Speaker 3: first one is utterly visionary, the idea of tariffs being
Speaker 3: a pillar of a bold vision to reindustrialize to onshore
Speaker 3: manufacturing and motivate the world to invest in the United States.
Speaker 3: And it's just an incredible vision. I think this is
Speaker 3: going to be a transformative idea for the next century
Speaker 3: for us. We're all in on the idea where we're
Speaker 3: setting up plants and encouraging our partners from around the
Speaker 3: world to invest the United States, and we have a
Speaker 3: lot of stuff going on, and so I'm very excited
Speaker 3: about that. The second, the second major idea is to
Speaker 3: we send the AI Diffusion Rule, recognizing that this is
Speaker 3: an about limiting American technology, but this is about accelerating
Speaker 3: American stacks around the world to make sure that before
Speaker 3: it's too late, that the world builds on American stacks
Speaker 3: during this extraordinary time the era. And so these two
Speaker 3: initiatives are completely visionary and it's going to be transformative
Speaker 3: for America.
Speaker 2: Jensen. In the time that you and I have been
Speaker 2: on air having this conversation, some news is broken from
Speaker 2: US Secretary of State Rubio who has said that the
Speaker 2: US will begin revoking some Chinese student visas. What I
Speaker 2: wanted to ask you is that with US government limits
Speaker 2: on foreign student visas, how does that impact a company
Speaker 2: like Nvidia. I think about the size but also composition
Speaker 2: of your engineering talent here in California and elsewhere in
Speaker 2: the United States.
Speaker 3: I believe the administration still feels very strongly about about
Speaker 3: the incredible importance of immigration.
Speaker 1: Look, I'm an immigrant.
Speaker 3: Uh. I know many immigrants that that came and came
Speaker 3: to United States to to build a great life. And
Speaker 3: many of us, many of us have contributed greatly to
Speaker 3: the technology industry and and uh in.
Speaker 1: The United States. I believe that that's going to have
Speaker 1: to continue. Uh.
Speaker 3: Remember, remember, you know, people from all over the world
Speaker 3: want to come to United States. This is just such
Speaker 3: an extraordinary country with such incredible opportunities.
Speaker 1: We want the brightest to come here.
Speaker 3: We don't want we don't want others to you know,
Speaker 3: we we don't want everybody to be able to come here.
Speaker 3: And there should be there should be rules and and
Speaker 3: but nonetheless for the ones that that really can make
Speaker 3: a contribution, want to make a difference, and we want
Speaker 3: to make it possible for them to come here and
Speaker 3: and bring their great ideas, bring their great intellect and
Speaker 3: help us build in a great America. And so I
Speaker 3: think I think the administration is all in on that,
Speaker 3: and I don't think anything that they've said changes that.
Speaker 2: Jensen I surveyed our Bloomberg Technology audience around the world
Speaker 2: for questions for you, and I think the most common
Speaker 2: question is understanding who Nvidia's customers are away from the hyperscalers,
Speaker 2: but actually many questions about Elon Inc. And whether Tesla
Speaker 2: and Xai and Aggregate might actually be one of the
Speaker 2: biggest customers you have. You think about not just the
Speaker 2: data center chips, but this chip specific for optimists or
Speaker 2: in the cars, the omniverse component.
Speaker 1: Could you speak a little about that. We do.
Speaker 3: We do a lot of business with Tesla and Xai Elons. Elons,
Speaker 3: as you know, is just an extraordinary engineer and I
Speaker 3: love working with him. We've built some amazing computers together.
Speaker 3: We're going to build many more computers together. And the
Speaker 3: work that he's doing in groc his self driving car,
Speaker 3: his optimists, these are these are all, every single one
Speaker 3: of them world class, every single one of them revolutionary,
Speaker 3: every single one of them are going to be gigantic opportunities,
Speaker 3: and we're delighted. I'm delighted to be working with him
Speaker 3: on that.
Speaker 1: And so I think the.
Speaker 3: The optimist opportunities just right around the corner. It's very
Speaker 3: likely that human robots are are going to be robots
Speaker 3: that we can deploy into the world relatively easily. And
Speaker 3: this is the first robot that really has a chance
Speaker 3: to achieve the high volume and technology scale necessary to
Speaker 3: advance technology.
Speaker 1: And so I think this.
Speaker 3: Is likely to be the next multi trillion dollar industry.
Speaker 1: I'm very excited for him.
Speaker 2: Tensen. Let's end by talking about Europe. You alluded to
Speaker 2: a trip you're taking next week. It sounds as if
Speaker 2: the infrastructure build out in Europe is coming. Where will
Speaker 2: you be visiting and who we be speaking with?
Speaker 3: Well, I'm going to leave the who as a surprise
Speaker 3: for all of you, but I'll be seeing lots of
Speaker 3: heads of states, and I'll be in France, in UK
Speaker 3: and Germany, UH and UH Belgium, and and I think
Speaker 3: that that the the It's very clear now that every
Speaker 3: under every country recognizes that artificial intelligence, like electricity, like internet,
Speaker 3: like communications, is part of a national infrastructure. No, no
Speaker 3: society could do without intelligence, as you know, And and
Speaker 3: there's an awakening that every country has to has to
Speaker 3: take some initiative to ensure that that their country and
Speaker 3: their society has access to artificial intelligence. And so we're
Speaker 3: we're really delighted to be able to to work with
Speaker 3: uh uh uh uh. You know, work with the European
Speaker 3: UH countries to to bring AI infrastructure to them and
Speaker 3: work with them to build AI factories. There's an UN
Speaker 3: team number of AI factory projects in discussion and development
Speaker 3: and and so so I'm really excited to make this trip.
Speaker 1: We're going to be all over Europe.
Speaker 3: MH.
Speaker 2: Convidia CEO Jansen Wang, thank you, thank you, good to
Speaker 2: see you.