In a compelling interview with Yahoo Finance, Nvidia CEO Jensen Huang shed light on the company’s remarkable first-quarter performance and the groundbreaking advancements in AI technology driving their success. The tech giant surpassed Wall Street expectations again, reporting a staggering 262% revenue increase year-over-year, largely fueled by its Data Center unit. Huang’s insights into Nvidia’s strategies and innovations provided a clear picture of how the company is navigating the rapidly evolving landscape of AI and computing.

Huang discussed the upcoming release of Nvidia’s Blackwell platform, emphasizing its potential to revolutionize AI inference and data center operations. He dispelled concerns that the anticipation of Blackwell might dampen current demand for the company’s Hopper products. “Hopper demand grew throughout this quarter after we announced Blackwell,” Huang said, highlighting the insatiable demand for Nvidia’s cutting-edge technology. The conversation also delved into AI inference’s complexities and opportunities, positioning Nvidia as a leader in an increasingly critical market segment.

As Nvidia continues to innovate, it must balance rapid growth with sustainable profitability, a challenge Huang addresses head-on. Despite the intense competition from newer, more agile companies, Nvidia’s strategic focus remains clear. “We are building a responsible company, not growth at all costs,” Huang stated. “The second half of our fiscal year saw double-digit growth, and we’ve put out a billion-dollar number for the next eight quarters. A third of our business is SaaS, which is crucial as it’s a big part of how customers look at the future.”

Huang pointed out that Nvidia is not just about scaling revenue but also about ensuring robust financial health. “We delivered almost $200 million of free cash flow and bought back almost $600 million of stock,” he said. This dual focus on growth and profitability differentiates Nvidia from many of its competitors, providing a solid foundation for long-term success.

Transformative Nature of AI Inference

Nvidia’s CEO, Jensen Huang, has been particularly vocal about the transformative potential of AI inference, which he believes is a game-changer for various industries. In his recent interview with Yahoo Finance, Huang delved deep into the concept, explaining why inference is poised to become a significant market opportunity for Nvidia.

“AI inference is the process of using a trained model to make predictions on never-seen-before data,” Huang explained. This process, which involves real-time decision-making based on vast amounts of data, is critical for applications ranging from autonomous vehicles to healthcare diagnostics. “Inference is going to be a giant market opportunity for us,” Huang asserted, underscoring Nvidia’s strategic focus on this area.

One of the key points Huang emphasized is the complexity of AI inference. Unlike traditional computing tasks, inference requires advanced capabilities to process and analyze data rapidly and accurately. “Inference used to be about recognition of things,” Huang noted. “But now, inferencing is about the generation of information – generative AI.” This shift from recognition to generation has significantly increased the computational demands, making it a more intricate and valuable process.

Huang provided a vivid example of how AI inference is applied in real-world scenarios, highlighting its impact on industries such as autonomous driving. “Whenever you’re talking to ChatGPT, and it’s generating information for you or drawing a picture for you, or recognizing something and then drawing something for you – that generation is a brand-new inferencing technology. It’s complicated and requires a lot of performance,” he said.

The challenge and opportunity of AI inference lie in its ability to handle large models and vast datasets efficiently. “Blackwell is designed for large models, for generative AI,” Huang said, referring to Nvidia’s next-generation chip. “We designed it to fit into any data center, and so it’s air-cooled, liquid-cooled, x86, or this new revolutionary processor we designed called Grace.”

AI and ML are Game-Changers in Cybersecurity

Nvidia CEO Jensen Huang emphasized the transformative role of artificial intelligence (AI) and machine learning (ML) in the cybersecurity landscape. As cyber threats become increasingly sophisticated, AI and ML are essential tools in defending against and mitigating these attacks. Huang’s insights shed light on how these technologies redefine the cybersecurity paradigm and fortify defenses against ever-evolving threats.

Huang began by discussing the evolution of cyber threats, noting how they have transitioned from rudimentary hacks to highly complex and coordinated attacks often backed by nation-states. “What used to be cyberattacks or hacks from a few years ago has become a full-on industry,” Huang remarked. He highlighted the integration of AI and advanced technologies in orchestrating these attacks, making them more challenging to detect and counter.

AI and ML as Defensive Tools

Nvidia’s foray into cybersecurity leverages its AI and ML capabilities to build robust defense mechanisms. Huang explained that AI and ML are pivotal in identifying and responding to threats in real time. “Inference, the process of using a trained model to make predictions on never-seen-before data, is critical in cybersecurity,” he said. Nvidia’s GPUs and AI platforms enable organizations to deploy sophisticated models that can analyze vast amounts of data swiftly and accurately, identifying anomalies and potential threats before they can cause significant harm.

One of the most significant advantages of AI and ML in cybersecurity is their ability to process and analyze data in real time. Huang highlighted how Nvidia’s technology empowers organizations to maintain a proactive stance against cyber threats. “We provide customers with a safe space, a trusted space where they know it’s clean and pristine,” he explained. This capability allows businesses to bring back their core data, give them clean infrastructure settings, and automate the recovery process, all while conducting forensics to figure out what happened.

Differentiating Nvidia in the Cybersecurity Space

Huang was unequivocal when asked how Nvidia’s products differentiate themselves from competitors like Rubrik. “There is no real competitor,” he asserted. “It’s a concept that we have taken that large companies had in the event of a catastrophic situation and democratized it.” Nvidia has made these advanced cybersecurity tools accessible to companies of all sizes, providing them with the same level of protection that was once only available to large enterprises.

Huang also touched on the strategic importance of integrating AI and ML into cybersecurity frameworks. He noted that these technologies are about defense, resilience, and recovery. “We are building AI factories,” Huang said, referring to the comprehensive, integrated systems Nvidia develops. These systems combine CPUs, GPUs, sophisticated memory, and networking components, all orchestrated by advanced software to create a resilient cybersecurity infrastructure.

Strategic Partnerships and Future Prospects

Nvidia’s strategic partnerships are central to its continued success and future growth. One notable collaboration with Dell enhances Nvidia’s ability to deliver comprehensive data protection and cyber resilience solutions. “Partnering with Dell allows us to offer a modern data protection solution that meets the needs of customers with existing Dell infrastructures,” Huang explained. This partnership exemplifies Nvidia’s strategy of leveraging established ecosystems to deliver superior solutions.

Looking ahead, Huang remains optimistic about Nvidia’s prospects. He is particularly excited about the upcoming Blackwell platform, which is expected to drive significant revenue growth. “Blackwell is a giant leap in AI, designed for trillion-parameter models,” Huang said. “We are bringing AI to ethernet data centers, which will greatly expand the ways our technology can be deployed.”

Huang also highlighted the broader implications of Nvidia’s technological advancements. He pointed to the burgeoning demand for AI capabilities across various industries, from autonomous vehicles to healthcare. “The technology we’re developing is not just for tech companies,” he said. “It’s being used in everything from autonomous vehicles to drug discovery. The potential applications are vast and varied.”