At Nvidia’s GTC 2024 event on Monday, CEO Jenson Huang delivered an inspiring keynote filled with talk about the “AI factory.”
“In the last Industrial Revolution, the raw material that went into the factory was water,” Huang told TechCrunch in an interview after the keynote. “And the product was electricity.”
Huang drew a parallel between this traditional way of turning raw material into something valuable and the concept of data centers, which are often seen as mere money pits.
“There’s a new Industrial Revolution happening in these [server] rooms: I call them AI factories,” Huang declared. “The raw material that goes in is data and electricity. What comes out is data tokens. The token is invisible and will be distributed all over the world. It’s very valuable.”
This new perspective is crucial for companies to understand, especially for Nvidia’s benefit. As Huang explains, data centers are typically seen as cost centers and expenses, but approaching them as factories that can generate revenue is a game-changing concept.
“The last time, data centers went into your company’s cost centers and capital expenditure. You think of it as cost,” he stated. “However, a factory is a different thing. It makes money.” He went on to say, “The new world of generative AI has a new form of factory.”
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