“Nvidia CEO Pushes for ‘AI Factory’ Mindset in Corporate Sector: Shifting away from the Traditional Data Center Approach”

“And the product was electricity.”He was comparing this — turning raw material into something else that have value — to the notion of data centers, which are purely money pits. “There’s a new Industrial Revolution happening in these [server] rooms: I call them AI factories,” Huang said. “The raw material that goes in is data and electricity. It’s very valuable.”The distinction makes a lot of sense in a world where Nvidia benefits tremendously if it can persuade companies to think of data centers and AI tools in a different way. “The last time, data centers went into your company’s cost centers and capital expenditure.

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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Max Chen

Max Chen is an AI expert and journalist with a focus on the ethical and societal implications of emerging technologies. He has a background in computer science and is known for his clear and concise writing on complex technical topics. He has also written extensively on the potential risks and benefits of AI, and is a frequent speaker on the subject at industry conferences and events.

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