Nvidia CEO on OpenAI Chip: "Lots of Projects Start

Nvidia CEO Jensen Huang is not taking OpenAI's new "Jalapeño" chip personally. He remains confident in Nvidia's technology and its ability to supply the AI industry. Huang was asked if he was offended by a company receiving Nvidia investment also developing a competing chip. He said he is comfortable with competition, noting that many projects start and many get canceled. He believes Nvidia's broader platform, supply chain, and technology scale are key advantages. What's interesting is that OpenAI's Jalapeño chip reportedly outperformed Nvidia's GB300 in specific AI inference tests, showing more AI work per unit of power and faster responses. However, this comparison has limitations, as Jalapeño was not tested against Nvidia's newer platform and focuses only on AI inference, not training. Despite new custom AI chips, Huang states Nvidia is increasing its market share in AI, with growth accelerating and technology leadership extending. This comes as Nvidia reported a 106% increase in second-quarter revenue, reaching $96.22 billion. The company also projects strong revenue growth for the third quarter. The bottom line is that the AI chip landscape is becoming more competitive, but Nvidia's leadership remains strong for now.