NVIDIA's Epic Rise from Zero to $3Trillion [Documentary]

NVIDIA's Epic Rise from Zero to $3Trillion [Documentary] Explorist 180K subscribers 45,859 views Jun 10, 2024 Visit our video's sponsor https://aura.com/explorist to get started on a 2-week free trial and see where your personal information is being sold online. - About Documentary - Learn about Nvidia's incredible journey from a small startup to a $3 trillion company in this documentary. Explore Nvidia's impact on technology, AI, and more, as well as the fascinating story of founder Jensen Huang. If you're interested in Nvidia stock or the latest Nvidia news, this documentary is a must-watch! - Brief - When it comes to tech companies, Nvidia truly has a remarkable story. The company was started with not much money and a dream to change its industry. In the beginning, its bread and butter was in the gaming market but it saw an initial failure with the NV1 and only a few years in, Nvidia was on the brink of bankruptcy. Then came the RIVA 128 that basically saved Nvidia from going under and kept it on the path to greatness. Then came Nvidia’s IPO and the groundbreaking Xbox deal. As it entered the 2000s, the company began to acquire other firms, strengthen its presence in the gaming sector and found itself in a few controversies along the way. But more important was that Nvidia began exploring deep learning and the possibilities of AI. At the time, AI was not as well-known and used as it is now. No one really knew if it would end up being profitable but Nvidia chose to take a risk on it. Taking risks has been a consistent factor in its success and when it comes to AI, it paid off massively. Chapters: 00:00 Intro 01:51 Founders 07:54 History 20:01 Nvidia vs Intel 22:49 Early Deep Learning 26:12 Online Crime 28:21 Other Developments 33:05 How Nvidia Makes Money 36:09 Controversies 40:03 Nvidia vs Other Companies 46:04 Nvidia vs The World 48:41 How AI (and Nvidia) Will Take Over The World 53:02 Where Are The Founders Today 55:33 In Retrospect Chapters View all Transcript Follow along using the transcript. Show transcript ETranscript Search in video Intro 0:00 This video is brought to you by Aura. Hi, welcome to NVIDIA. 0:08 In many ways this is the future of computing. They said the future was a dream. 0:16 Welcome back, everybody. Jensen is here. Of course, the CEO of NVIDIA. This is the clear winner. 0:21 Of every winner in the world of artificial intelligence thus far, his company powers everything from 0:27 Open AI, Google's programs , Meta. we're all frenemies in some ways. We'll talk about it. 0:32 Most valuable tech company. This company is now worth more than most other countries GDP in the world. 0:39 It has in fact surpassed Australia, South Korea, even Russia. Every innovation, every breakthrough, 0:46 every connection, every revolution. They are all powered by a single spark. 0:52 Only four companies in the world are worth more than two trillion dollars. Quick, what's the most valuable 0:58 tech company you can think of? Tesla? Is it Apple? Maybe Meta? Whichever one came to mind, the 1:03 chances are that it is still not as valuable as NVIDIA. And it changes everything. 1:11 While it might not have the instant name recognition of an Apple or a Tesla, NVIDIA is one of the most important 1:16 companies in the world, as well as being one of the most profitable. NVIDIA has done it again, the chip 1:21 giant blowing past analyst expectations in its strong fiscal first quarter, data center revenue alone soaring 1:28 by 427 percent year over year. Just as interesting as its current success is, so is 1:35 its incredible backstory. NVIDIA has been around since the 1990s, 1:41 but only really found itself among the big leagues in the last decade, but how did the company get started and how was AI about 1:47 to make it even more powerful? Stick around and find out. Founders 1:57 As we dive into Nvidia, it's important that we know the men behind it. Nvidia was founded in 1983 and 2:03 is a creation of three engineers. Jensen Huang Chris Malachowsky, and Curtis r Priem. 2:10 I'm Jensen Huang. I'm the president and CEO of Nvidia. I met Chris and Curtis. They were at SUN Microsystems. 2:15 I was at LSI Logic. So we were all from the workstation industry and all we had ever worked on 2:21 were SUN workstations and have Valiant workstations and things like that. Huang was born in Taiwan, but immigrated 2:28 to the United States as a child. He got degrees from Oregon State University and Stanford. By the time NVIDIA came to be, he 2:34 had worked as a director at LSI Logic and as a microprocessor designer at Advanced Microdevices Incorporated. 2:42 Malachowsky was raised in New Jersey. and graduated from the University of Florida. His work history by 1993 included 2:49 Hewlett Packard and Sun Microsystems. Preim had also worked at Sun Microsystems and is credited 2:54 with designing the first graphics processor for the PC, the IBM Professional Graphics Adapter. 3:00 The three met thanks to their work when Jensen was sent by LSI Logic to Sun Microsystems. 3:06 Where I ended up working on computer graphics. There I met my colleague, Curtis. And we were designing graphics 3:12 devices for the Sun workstation. Got together with our friend Jensen, the supplier of chips to Sun Microsystems. 3:19 And we decided to start NVIDIA. To go pursue Multimedia in the PC space. 3:24 Which was a rather young and immature technology at the time. Malachowsky and Preim were building 3:30 chips as part of their jobs, and once Jensen was assigned to their department, a friendship blossomed. 3:35 But after a while, some major changes took place at Sun Microsystems. The type of graphics architecture that Malachowsky and Preim specialized 3:42 in wasn't the industry standard anymore, so they decided to leave. Once they were free agents, they 3:47 felt that the next move would be to start their own company, but to do this, they'd need some help. So they reached out to their good 3:53 friend Jensen Huang to join them, but he wasn't really interested. In the initial stage, they didn't know what type of 3:59 company they wanted to build. They just knew they wanted to have one. Plus, at the time, Huang had 4:04 a job that was stable and paid well, plus a family to look after. Asking your friend to quit his 4:09 cushy job to start a company that you don't know what it will be won't really go down well. As Huang said, they kept 4:16 asking me and finally I said, They kept asking me and finally I said, well, you know, tell you what, why don't we just go out 4:22 and we can think through what kind of company you guys can go build. Not to be deterred, the three 4:27 men agreed to meet up and discuss this future company. And that is when the now iconic meeting took place at a 4:33 Denny's diner in East San Jose. Even after the initial meeting, they would meet day after day, downing cups 4:39 of coffee and putting together the vision for what would become NVIDIA. So, what was the vision 4:44 for the computer industry? Let's just say it all had to do with PCs. Keep in mind, this was back in the 4:50 90s when PCs were just taking off. Around the time that NVIDIA was being conceptualized, PCs 4:56 hadn't become a thing yet. But Huang, Malachowsky, and Preim predicted that it would happen soon. 5:02 They weren't the only ones who would think this, after all. The R& D departments of all the major tech companies would be racing 5:08 to the pinnacle of the PC market, so NVIDIA needed to stand out. How were they going to design PCs 5:14 that could be a cut above the rest? The answer was video games. 5:19 Computers up until that point were designed to be mostly functional. With not much emphasis on entertainment, 5:25 Huang explained that computers of that time didn't have microphones, speakers, video, or graphics. 5:32 Well, the NVIDIA founders wanted to counter that by enabling computers to have 3D graphics. 5:38 This way they could play video games. But why video games? Video games were really unique because 5:43 despite the fact that they were challenging to develop in terms of computer design, They were hot sellers. 5:52 The 80s were the period when video games stopped being limited to just arcades and could be played in people's homes. 5:58 Nintendo and Sega Genesis were already doing great things in the market, 6:07 but what if PCs could let consumers play better? It would be a goldmine. There were just a few problems. 6:13 First, the three men hadn't actually seen a PC before . Again, this was the 90s, and PCs weren't the common 6:19 household item they are today. Not to be deterred, they went out and bought a Gateway 2000 PC, 6:25 and immediately took it apart so they could learn how it worked. The other problem was that they didn't have much in the way of 6:30 funding, or even a company name. Soon, they were able to raise $40,000, which took care of the first part, but what about the name? 6:39 The name NVIDIA came about in a very geeky way. Whenever the founders would save files to their computers, 6:45 they would use the name N V. Which meant next version, because they were constantly changing. 6:50 So, they figured that they'd look for all the words that had N and V in them. After much searching, they came across 6:55 NVIDIA, the Latin word for envy. They adapted the name to NVIDIA, and on April 5th, 1993, the empire that 7:03 would be known as NVIDIA was born. We started a company, and the business 7:09 plan basically read something like this. We're going to take technology 7:14 that was available only in the most expensiveworkstations. We're going to try to make it reinvent 7:20 the technology and make it inexpensive. And, the killer app was video games. 7:28 And so I, I took this idea to Sand Hill Road. And, they told me 7:33 there was no video game market. People don't start companies to play games. And, my parents, like, I 7:40 remember calling my mom and telling her that we would start this company. And she says, you know, what did you, what do you guys do? And I said, we built these things 7:46 called 3d graphics chips and, people would use them to play games. 7:51 And then she, she said, why don't you go get a job? History 8:00 Even though NVIDIA was off the ground, they weren't going to go too far with just 40,000, which is nothing 8:06 in the billion dollar world of tech. Luckily, as we've said, the three men had a lot of experience working 8:11 in tech, which meant they had connections they could lean into. Jensen Huang especially had a very 8:16 promising connection, the head of LSI Logic, Wilfred Corrigan, who happened to be his former boss. 8:22 When they spoke with Corrigan, he said that they need to speak to Don Valentine at Sequoia Capital. 8:27 Now, the NVIDIA founders have been open about the fact that they were Terrified during their pitch meeting, even though Wilfred Corrigan spoke very 8:33 highly of them and basically demanded that Don Valentine give them money. They were still nervous. Wilfred said, look, if you're 8:39 going to start a company, go talk to Don Valentine. And while I was sitting there, he picked up the phone and he said, Hey, 8:45 Don, I'm going to send a kid your way. He's one of my best employees. I'm not sure what he's going to do. 8:51 Give him money. After all, they were a newbie company asking for millions. 8:56 Huang admitted that he was very anxious and basically bombed the pitch. Don Valentine decided that he was 9:02 going to give them the funds they needed, mostly because Wilfred Corrigan told him to, but he did give them a 9:07 chilling warning, if you lose my money, I'll kill you. In order for Nvidia to succeed, we 9:13 needed another startup to succeed. And that other startup was electronic arts. 9:19 And, and then he, on the way out, he, he reminded me that electronic art's CTO. 9:25 is 14years old and had to be driven to work by his mom. 9:31 And he just wanted to remind me that that's who I'm relying on. That, that, and then, and then 9:39 after that he said, if you lose my money, I'll kill you. And that, that was, that was kind of my memories of that first meeting. 9:46 NVIDIA launched with 20 million in funding from Sequoia Capital and other firms, and immediately 9:51 had a failure on its hands. What was this failure? The NV1 chip that was released in November 1995. 9:58 Now, on paper, the NV1 chip sounds pretty amazing. The chip had both 2D and 3D graphics, 10:04 video processing, audio wavetable processing, a game port, and others. The plan was that once it hit the 10:11 market, it would replace 2D graphics cards, Sound Blaster compatible audio systems, and 15 pin joystick ports. 10:18 To top it off, it would be compatible with the Sega Saturn console that was about to hit the market. 10:23 The stars were aligned for it. So what happened? Well, a few things. First, the NV1 chip was optimized 10:30 to process quadratic primitives when other companies were optimizing for triangle primitives. Once the chip hit, companies 10:36 like Microsoft favored the triangle primitives, which left NVIDIA in the dust. 10:42 Then there's the fact that it was too expensive. Yes, it had tons of impressive features all at once, but this made it higher 10:48 cost compared to other options like the S3 Graphics Verge and Matrox Mystique. And the Sega Saturn console that 10:54 was supposed to guarantee NVIDIA a hit, failed in the market as well. The result? NVIDIA gave its customer partner, 11:01 Diamond Multimedia, 250, 000 units of the NV chip to sell, and 249, 000 were sent back. 11:08 Our customer partner, Diamond Multimedia, we sold them 250, 000 NV1s, but the 11:14 retail sales wasn't very good. It was so bad that the NV2 that was 11:19 already in development was canceled and the company had to let go of a bunch of its staff, but not to be deterred, the founders took the 11:26 lessons learned from the failure of the NV1 and put all their efforts into its next big release, the Riva 128. 11:33 It is important to remember that when the Riva 128 was released in August, 1997, NVIDIA was on its last leg. 11:40 When Sega cancelled the NV2 contract, the company was given about 5 million dollars which helped it stay afloat, 11:46 but this lifeline was exhausted. It had one month of payroll left, and if this product wasn't a hit, NVIDIA as a company was done for. 11:55 Fun fact, this time in NVIDIA's history was so dire, that the company has an unofficial motto. 12:00 We're only 30 days away from going out of business, that it uses to this day. All the time and effort that Nvidia 12:07 had put into getting the best talent was about to be tested. The Riva 1 28, which stands for Real-Time Interactive Video 12:13 and Animation Accelerator, was a pretty impressive GPU. It was the first to be able to integrate 3D 2D and video acceleration, which 12:21 blew competitors out of the water. On top of this, Nvidia performed the 12:27 world's first PC chip emulation, which was done with a piece of hardware they got from a defunct company called ICOs. 12:35 And there was this other company that went out of business at the time, and I'd heard about it. It's called Icos. And Icos had built this thing called 12:41 an emulator, an end system emulator. We called Icos. They said, thanks for calling, 12:47 but we're out of business. The Riva 128 was unlike anything the market had seen before and did not 12:53 have the pricing issues that NV1 did. Within four months of release, the Riva 128 sold a million units, which is 13:00 especially incredible when you realize that the NV1 barely sold a thousand. Riva 128 13:07 was a reset of our company because by the time that we realized we had gone down the wrong road, Microsoft 13:12 had already rolled out DirectX, it was fundamentally incompatible with NVIDIA's architecture, 30 competitors 13:19 had already shown up, and that time, 1997, was probably NVIDIA's best moment. 13:25 And the reason for that was our backs were up against the wall. We were running out of time. We're running out of money and for a 13:30 lot of employees running out of hope. And the question is, what do we do? Well, the first thing that we did was we decided that, look, DirectX is now here. 13:38 We're not going to fight it. Let's go figure out a way to build the best thing in the world for it. 13:43 And Riva 128 is the world's first fully accelerated hardware 13:48 accelerated pipeline for rendering 3d. Less than a year later, the Riva TNT was released, and this product 13:55 tried to compete with the then popular Voodoo 2, a set of three specialized 3D graphic chips that 14:01 was released by its competitor 3DFX. The Riva TNT had twice the render speed and a higher memory 14:08 than the Riva 128, but this didn't mean that it was perfect. It didn't quite surpass the Voodoo 2 in terms of performance and sales, 14:15 and the lack of support for Glide API, which was big with developers at the time, meant that Riva TNT was not 14:21 Exactly a runaway success. Still, it was far from a failure and helped establish NVIDIA as a 14:27 major player in the tech world. The company might have gotten off on a shaky note, but the Riva's created a turn around in its credibility 14:33 and its financial situation. Suddenly, it was the cool new kid on the block. And after the Riva TNT, they 14:40 were about to get an even bigger cash influx by going public. On January 22nd, 1999, NVIDIA became 14:47 a publicly listed company, and this meant that it had more publicity and more money to pursue new ventures. 14:54 The first of these would be NVIDIA's fifth chip, the GeForce 256, which was a GPU at its core and marketed as such. 15:02 At its time, the GeForce 256 was one of the best products in the market, because it also featured the world's 15:08 first programmable accelerator. 15:14 That was the world's first GPU, and that was, adding programmability to acceleration. 15:19 So, we created the world's first programmable accelerator. A programmable accelerator is 15:25 accelerated computing. It significantly increased computers processing abilities. The GeForce 256 also found a lot of 15:32 applications in the video game sector. 15:38 At this point, the video game industry was worth billions, and had been mainstream for years. Every company was trying to align itself 15:45 with the gaming industry in some way. But NVIDIA struck gold with the GeForce 256. 15:51 These are some of my favorite GPUs. Look at GeForce 256. The world's first GeForce. 15:58 Look how cute GeForce 256 is. At the time, so you know, at the time, it was the single 16:04 largest chip ever built. It was bigger than a CPU. 16:09 And people were shocked. That we built something that big and they were even more shocked that we could sell something 16:14 that big. You might recall that in the past that NVIDIA's early projects failed partially because the other options in the market 16:21 weren't compatible with its products. One example of this was Microsoft's DirectX. 16:26 When the NV1 was first released, Microsoft's DirectX APIs only supported triangle primitives, which 16:32 meant that NV1 had limited use. Now, Microsoft came around and wanted to 16:37 use the GeForce for a brand new product. What was this project, you ask? You may have been wondering what this great device was here. 16:45 This is the Xbox. And so, for the first time, let me now unveil Xbox. 16:54 Unless you've been living under a rock, you know how big of a deal the Xbox is. Not only did this get Nvidia 17:00 even more popularity in the tech world, but it also got a tidy 200 million advance for its troubles. 17:06 It seemed that the days of barely having enough to cover payroll were well behind them. But, while this deal was 17:11 profitable, it did cause some minor complications at NVIDIA. As you can imagine, this 200 million 17:17 project with Microsoft was a big deal, and needed the best hands on deck. So, NVIDIA had its best engineers 17:24 working on the Xbox deal, which meant that in house NVIDIA projects were in a weird spot. 17:29 Years later, though, There was a bit of trouble with the law because of the Xbox deal. David Chang, who worked on the Xbox 17:35 project, had used his knowledge of the deal to commit insider trading, along with 15 others. 17:41 He was found guilty of this charge and was fined 116, 000 by the SEC. 17:47 But, outside of the Xbox deal, NVIDIA also spent much of the 2000s acquiring 17:52 companies and intellectual property. In 2002, NVIDIA bought the intellectual assets of 3dfx, a long time rival. 18:00 The same year, it bought Exluna a maker of software rendering tools. In 2003, Nvidia paid $70 million 18:08 for MediaQ, and in 2004 TCP/IP. 18:13 2005 saw the purchase of ULI electronics and in 2006 Hybrid Graphics. 18:19 In 2007, Nvidia bought Portal Player Incorporated. And in 2008. 18:24 It bought Ageia, a semiconductor company. All these acquisitions were not coming cheap, and were also 18:30 around the same period that NVIDIA was subpoenaed by the U. S. Department of Justice. At the time, there were suspicions 18:36 of violations of antitrust regulations, not just from NVIDIA, but also from its main rival, AMD. 18:43 No charges were ever filed, and the issue quickly died down. In fact, NVIDIA was Forbes Company 18:49 of the Year for 2007, which showed that it had really put itself on the map in a little over a decade. 18:56 But this didn't mean that NVIDIA was out of the woods just yet. Besides all the money that was being 19:01 spent on the acquisitions, NVIDIA wasn't the new kid on the block anymore. They'd had a big hit on their 19:06 hands when they developed the GPU and made waves in the gaming space, but this was the problem. 19:11 They were being pigeonholed into the gaming space. They had rivals with AMD and Intel, and 19:17 while they weren't doing badly, they weren't doing They needed something new. Something not tied to video games. 19:23 In 2008, a year after they won the award from Forbes, NVIDIA faced a number of challenges. 19:28 Several of its GPUs and mobile chipsets had suffered malfunctions due to a manufacturing error and this led to a 19:34 write down of 200 million in revenue. This happened in the very first quarter and would not be the only setback for the year. 19:40 The faults with the GPUs didn't just impact their revenue but also made them the subject of a class action lawsuit in late 2008. 19:47 Consumers claimed that the GPUs had been put into Apple, Dell, and HP laptops, 19:53 and they, in turn, malfunctioned. In response, NVIDIA offered repairs and refunds to customers, and the 19:59 issue was fully settled in 2010. Nvidia vs Intel 20:06 As the 2010s began, NVIDIA took a bold move regarding Intel. For years, the two companies 20:12 had been at each other's throats, and things got messy. On the lighter end, NVIDIA created 20:18 a website called Intel's Insides, where they posted satirical cartoons making fun of its rival. 20:24 In the cartoons, Intel is about to kill off the free market represented by a turkey and tries 20:29 to take credit for NVIDIA's work. Let's just say that this feud was nothing if not interesting. 20:34 But, cartoon and troll websites aside, the two companies were constantly going at each other in court. 20:40 In the computing world, you and Intel have butted heads more and more. It seems and, I'll ask it simply, you 20:49 know, why do you hate Intel so much? Well, we don't hate Intel so much, but they do hate us a lot. In early 2009, Intel sued NVIDIA 20:56 and claimed that it didn't have the right to design chipsets that would be compatible with its processors. 21:01 NVIDIA shot back and said that Intel was doing too much huffing and puffing over the CPU sector, which was on the decline. 21:07 NVIDIA countersued, but in the meantime, it had to halt production of its nForce chipset line. 21:12 You're in a high profile battle, legal battle with Intel that's scheduled to be litigated later this year. 21:18 What's, what's, what's going on there? We're engaged in two legal, legal disputes, with, related to Intel. 21:24 One of them, chipset line. They initiated and we sued, we countersued. The second one, 21:30 Is related to the FTC. With respect to antitrust. The issues at the time can be looked at like this, the two companies 21:36 had a deal that allowed NVIDIA to design chipsets that would be compatible with Intel products. 21:42 Then there was a dispute about whether or not the license covered specific products. This was what led to the lawsuits and cartoon trolling. 21:49 But by 2011, the two came to a solution in the form of a six year cross licensing deal that would 21:54 let Intel access NVIDIA's tech and let NVIDIA License Intel's patents. Intel paid 1. 22:01 5 billion for this deal and it ended the long running legal battle. Today, things are much better 22:06 between Intel and NVIDIA. In fact, NVIDIA CEO, Jensen Huang said in 2022 that the company was open to 22:14 having Intel manufacture its chips. It's crazy to think that these two companies that were at each other's 22:19 throats for so long would have made peace, but that seems to be the case. 22:24 Back in the early 2000s was a crucial time in the Intel NVIDIA rivalry. Yes, the two had been competitors for 22:30 years, but the industry was changing. There was debate about whether CPUs or GPUs would be the 22:36 future of the tech world. NVIDIA accused Intel of clinging to the old glory days of CPUs while they 22:41 were looking to the future with GPUs. It was this vision that saw NVIDIA explore deep learning. Early Deep Learning 22:54 Ready? Go! Once upon a time, it was all fun and games. NVIDIA started off by making 23:00 chips for video game machines. Graphics became serious business when people started using 23:05 NVIDIA for blockbuster movies. Medical imaging devices. And the world's most 23:10 powerful supercomputers. And then one day, researchers discovered that our technology was perfect for AI. 23:20 And one day, about six years ago, a whole bunch of researchers discovered that our GPU was 23:27 perfect for deep learning. NVIDIA's adventures in the world of deep learning began with the release of CUDA in 2006. 23:34 In 2006, CUDA, which has turned out to have been a revolutionary computing model, we thought it was 23:41 revolutionary then, it was going to be an overnight success, and almost 20 years later it happened. 23:46 We saw it coming. So what is CUDA? Well, it's a closed source parallel 23:51 computing platform, an API that lets software use certain GPUs. The fact that it allows for broader 23:57 use of GPUs, the thing NVIDIA was known for at the time meant that this tech could expand beyond just gaming. 24:04 And one way that these capabilities were being explored was through students at university campuses. 24:10 Andrew Ng, a computer science professor at Stanford has explained that as far back as 2008, he had 24:15 students telling him about CUDA and all the cool things that it could do. One thing stuck out, which 24:20 was that it could speed up deep learning. And then there was one other breakthrough technology I remember 24:26 at Stanford when my students were telling me, Hey Andrew, there is this. Thing called CUDA. 24:32 Not that easy to program, but it's letting people use GPUs for something different. But could we build a server 24:37 to use GPUs and see if they could scale up deep learning? And that server wound up being what we use for our first deep learning 24:45 experiments to train Neural networks. We started to see 10 x or even a 100 x speedups. 24:52 Now deep learning is an AI method that teaches computers to process data. in a similar way to what we humans do. 24:59 The faster computers can process data, the faster AI can develop. The fact that CUDA could do this was a big deal. 25:06 Ng students weren't the only ones with this idea. From Toronto to New York, computer labs were experimenting with CUDA's AI 25:12 capabilities and reaching out to NVIDIA. This was good. They'd found another application of 25:18 one of its most ingenious products. In 2024, we all know that AI is big 25:23 business and very profitable, but in the late 2000s, it was a big risk. 25:28 No one knew if it would go anywhere. And even though NVIDIA was a successful tech company, Huang has admitted 25:34 that they were uncertain about it. However, they decided to take the leap and poured money into getting the best AI researchers 25:40 and developing products around AI. Something happened about a decade and a half ago that completely 25:47 transformed computer science. I'll It was possible to use a piece of software called deep learning, 25:52 a set of algorithms that studies a bunch of data and learns patterns 25:58 from it triggered what we now called the big bang of modern AI. 26:04 But as you'll see in this video, It would take several years before the efforts would fully pay off. 26:10 Before we continue, let's take a moment to hear from our sponsor. 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They would commit to AI computing. 28:01 This was a giant pivot for our company. We're adding costs, we're adding people, we have to learn new skills. 28:06 It took our attention away from Our normal day to day competition in computer graphics and gaming, the company's focus was steered 28:13 away from its core business. And it wasn't just in one place. It's all over the company. It was a wholesale pivot 28:20 in this new direction. Other Developments 28:27 AI wasn't the only thing that NVIDIA was spending money on in the late 2000s and early 2010s. 28:32 In 2011, it released its Tegra 3 ARM system on a chip, which was designed for mobile devices and 28:38 also acquired a chip making company called Icera for $367 million. 28:43 An update to the Tegra 3 called the Tegra4 hit the market in 2013, and that same year Nvidia acquired a company 28:50 called PGI from STMicroelectronics. But the biggest expense that Nvidia 28:56 would take on in 2013 was the creation of its new headquarters. The vision the company had was 29:02 of two triangle shaped buildings on San Tomas Expressway, though another headquarters would be open 29:07 in 2022, but more on that later. The rest of the 2010s were filled with some pretty cool 29:13 developments for NVIDIA. It released the first GPUs of the GeForce 10 series. 29:18 The GTX 1080. Partnered with automobile companies and made more acquisitions. 29:25 One particular acquisition sticks out, which is its 2019 acquisition of Mellanox Technologies for 6. 29:31 9 billion. The motivation for this purchase appeared to be Nvidia trying to make its way into the high 29:36 performance computing space. Now, any company in the tech space designing for computers would 29:42 want to pursue high performance. But in NVIDIA's case, this was especially relevant 29:47 because of its AI ambitions. Today I want to talk about the new computer revolution. 29:52 And I think you feel it, you feel it all around you. And surely in Silicon 29:58 Valley, we feel it every day. This new computer revolution is called the artificial intelligence 30:06 revolution. Remember the research that the company was doing into AI in the 2000s. It was about to pay off in a 30:12 major way, partially thanks to a little company called OpenAI. Even if you haven't heard of OpenAI, you would have heard of 30:18 its flagship product, Chat-GPT. Generative AIs like Chat-GPT rely on large language models 30:24 to complete their processes. Our advances. Depend on GPUs being fast. 30:31 Speed of our computers is in some sense, the lifeblood of deep learning. And guess which company had spent 30:37 years developing GPUs that could accelerate machine learning. That's right. NVIDIA. 30:42 Not to mention that NVIDIA was an early supporter of OpenAI. It was truly a situation of 30:47 planning, meeting opportunity. I hand delivered the world's first DGX to OpenAI. 30:53 Since then, half of the Fortune 100 companies have installed DGX AI supercomputers. 30:59 DGX has become the essential instrument of AI. A decade before, no one knew 31:06 if AI would be profitable. Now, it was clear that it was. This created a massive revenue stream 31:12 for NVIDIA that brings in billions of dollars and has made it one of the most important companies in the world. 31:17 Besides the work that it does with OpenAI, NVIDIA has also explored other AI ventures. For example, in 2023, OpenAI 31:24 teamed up with Getty Images to launch a new program called Generative AI by Getty Images. 31:30 In the same year, NVIDIA celebrated its 30th anniversary at, you guessed it, a Denny's restaurant. 31:35 The same one where the three engineers had met all those years ago with the idea of starting the company. So we came here, right here to 31:41 this Denny's, sat right back there, and the three of us decided to start the company. 31:46 Frankly, I had no idea how to do it. And nor did they. None of us knew how to do anything. 31:52 Now the restaurant has a plaque declaring that a trillion dollar company was created there. Yes, that's a trillion with a T. 31:59 When did that happen? Let's take a look at the company's revenue history, shall we? In 2004, NVIDIA had a revenue 32:05 of just over 2 billion dollars. And for the rest of the two thousands, it stayed around the three or 4 billion mark. 32:12 By 2013, its revenue was about 4.1 billion. Impressive, but not the revenue you'd 32:18 expect for a trillion dollar company. It's when you get to the mid 2010s that things start to shift a lot. 32:24 NVIDIA's revenue had ballooned to 9.7 billion by 2017 and got to 32:29 over 11 billion by the next year. The biggest year to year growth so far has been from 2022 to 2023. 32:36 In 2023, NVIDIA joined the likes of Apple, Microsoft, and Amazon when it became a trillion dollar company. 32:43 That's right, the same company that was on the brink of folding up and barely had a month's payroll at one point had become one of the 32:49 biggest businesses in the world. But how did this happen? How did NVIDIA grow so big from the 2000s to the 2020s? 32:56 Sure, it was a successful company, even in the 2000s, but it was nothing like what we see now. 33:02 In a nutshell, it was AI. How Nvidia Makes Money 33:10 Okay, so we know that NVIDIA makes a lot of money, but how? There are a few different ways, and we'll go through all of them. 33:15 First, let's talk gaming. After all, this was what NVIDIA started with, and while it's not primarily known as a gaming company today, it 33:22 is still a big deal in the space. To me, the thing that really changed the course of game development for the industry was the invention of the GPU. 33:29 On August 31st, 1999, NVIDIA invents the world's first GPU. 33:34 PC gaming graphics are never again going to be the same. 33:40 NVIDIA has always worked to create the best graphics in the business. And over 30 years later, this still pays off. 33:45 It partners with some of the biggest game developers in the world and gets a pretty penny for its troubles. 33:51 The next thing is crypto mining. You see, mining crypto requires computers with a lot 33:56 of processing power, the same type that NVIDIA's GPUs offer. And while the company didn't set out to target the crypto market 34:02 necessarily, it has found a market with them and it sells its GPUs to crypto hungry users to this day. 34:08 The thing you'll notice with the first two examples is that any activity that requires fast and effective computers is one that NVIDIA can 34:15 cash in on, and it did for decades. But in the 2010s emerged a market that needed so much computing power 34:21 that it put NVIDIA on the map AI. . People are changing the world with AI. 34:27 From drug discovery, to chatbots, to autonomous machines, and beyond. 34:34 To achieve these breakthroughs, they need more than just AI expertise and development skills. 34:41 They need an AI factory. While many scientists believe that we're just scratching the surface 34:46 of what AI can do, it's already prominent in our daily lives. When a chatbot helps you with your customer service query, when Siri plays 34:53 you a song, when ChatGPT writes your emails, these are all examples of AI. 34:58 Speaking of ChatGPT, understanding how NVIDIA makes money can't be complete without a shoutout to 35:04 it, or specifically, a shoutout to OpenAI, its parent company. Take a moment and think of 35:09 all the transactions ChatGPT completes in a single day. As per current courses, ChatGPT 35:14 gets 10 million queries a day. This means two things. Number one, ChatGPT is very popular. 35:21 And number two, its data centers are doing a lot of work and will need some high powered GPUs. 35:26 And as you might have guessed, it is NVIDIA that has the honor of hosting Open AI's data centers. 35:32 Companies pay for the use of NVIDIA's data centers so that they don't have to host the hardware themselves. And as AI's use continues to 35:38 grow, so will its profits. It's no coincidence that it was around the same time that large 35:43 language models and generative AIs were taken off and that NVIDIA's annual revenue saw a spike. 35:49 The company had already grossed the coveted one trillion mark. And if AI keeps growing the way that it is, more milestones are in view. 35:57 Finally, we can't forget about the companies that NVIDIA has acquired over the years. It's spree of acquisitions from 36:02 the 2000s and beyond did more than just increase its market power. They are also sources 36:08 of revenue for NVIDIA. Controversies 36:15 I'm also happy to very publicly point out that NVIDIA has been one of the worst trouble spot we've 36:21 had with hardware manufacturer. Of course. No video about NVIDIA would be complete without looking at the 36:26 controversies it has gone through, and there have been a few of them. One of the most prominent had to do with its GeForce 9000 series. 36:34 While it was successful in the market, there were some issues regarding the GeForce GTX 970's specifications. 36:41 Basically, NVIDIA claimed that the card had a 4GB memory, but users noticed that it was more like 3. 36:47 5GB tops. It was revealed that while the card could technically access the remaining 0. 36:52 5GB of memory, it would be much slower. NVIDIA has been hit with a class action lawsuit that claims the company 36:58 has falsely advertised its GeForce GTX 970 graphics card. A class action lawsuit was 37:04 filed for false advertising and NVIDIA settled with the affected customers in July 2016. 37:10 The GeForce had another controversy, this time with its partner program. Companies that signed up for 37:16 it would get access to tons of benefits like help with public relations and funds for marketing. While this might sound great 37:21 on paper, not everyone in the tech world was on board. Some accused NVIDIA of being anti competitive and the program only 37:28 lasted from March 1st, 2018 to May 4th, 2018. NVIDIA today has decided to 37:34 pull the plug on their hugely controversial GeForce partner program. 37:40 Another scandal Nvidia faced had to do with crypto mining. You see, creating crypto involved having 37:46 a computer complete a computer equation and needs a lot of processing power. The kind of processing power 37:51 that Nvidia's GPUs offer. So, Nvidia made a lot of money selling its tech to cryptoheads. 37:57 It even went as far as creating a line of GPUs called CMPs for cryptoheads. 38:03 And let's just say they made a lot of money. In Q2 of 2018, its GPU sales had gone 38:08 up 52 percent compared to the last year and 25% by the third quarter. 38:13 So what was the problem? The problem was a lot of these sales of GPUs to crypto miners were listed under gaming revenue. 38:20 So investors would have thought that gaming was bringing in steady revenue when really it was the crypto market, 38:26 which is notoriously not stable. While Nvidia never admitted any wrongdoing. It did pay a 5. 38:31 5 million fine to the Securities and Exchange Commission. One of the more recent scandals 38:37 that NVIDIA has found itself in is its attempt to buy ARMS Holdings, a British software and chip company 38:43 from SoftBank, a Japanese holding company. Every single one of these devices has a chip inside that 38:49 has the ARM CPU, and that ARM CPU is the brain of that device. 38:54 U. S. chip giant NVIDIA is buying British chip designer ARM Holdings from SoftBank for 40 billion. 39:02 The announcement was first made in July 2020, and the deal would have been worth 40 billion. 39:07 All was going well until August 2021, when the UK's Competition and Markets Authority And the 39:12 European Commission stepped in. What could be so bad that both had to get involved? Well, they were worried that if NVIDIA 39:19 bought ARM, they would restrict their competitors from buying ARM's products. That could end up creating unhealthy competition and 39:25 regulators couldn't have that. By February, 2022, NVIDIA and SoftBank confirmed 39:30 that the deal had been canceled, the 40 billion deal being scrapped due to pressure from regulators in 39:36 the UK, EU, and the United States. In a statement, NVIDIA said 39:41 that ARM is at the center of the important dynamics in computing. Though we won't be one company, we will partner closely with ARM. 39:48 Years later, NVIDIA and ARM are still in collaboration with reports suggesting that they are developing ARM 39:53 based central processing units, CPUs. These CPUs are allegedly being created for Microsoft's Windows OS 40:01 and should hit the market by 2025. Nvidia vs Other Companies 40:09 So we know that NVIDIA is one of the biggest companies in the world, but it's hard to grasp just how big it is. 40:15 Try to visualize a trillion dollars Two AI Titans. They're now prophesying trillions 40:21 of dollars in opportunity, stratospheric predictions from NVIDIA chief Jensen Huang. And over the course of the next 40:27 four or five years, We'll have 2 trillion worth of data centers. One way to understand how big NVIDIA is, 40:33 is by comparing it to other companies. Because we've talked so much about them in this video, let's take Intel as an example. 40:43 Intel was once synonymous with the world's most advanced chips. It's responsible for inventing the very 40:48 building blocks of modern computing from memory chips to microprocessors. Intel was founded in 1968. 40:54 So it's 25 years older than NVIDIA. Now, what we're seeing is NVIDIA, which is a leader in graphics 41:01 chips and AI chips is moving into the personal computer space that Intel has dominated so long. 41:08 As of this video, NVIDIA has a market cap of 2. 7 trillion. Intel has a valuation of 185. 41:16 27 billion. If we do some quick math, we'll see that NVIDIA is worth 1. 2 billion. More than 11 times what Intel is. 41:23 That's impressive by any standards. It's also really impressive if you compare NVIDIA to other major companies. 41:29 Going by market cap, NVIDIA is almost twice the size of Meta, more than three times the size of Tesla, more than 41:35 five times the size of Samsung, and almost ten times the size of Netflix. NVIDIA's revenue also holds 41:41 up pretty nicely compared to other big name companies. NVIDIA at after hours highs in the back of a record breaking 41:47 earnings beat a ten for one stock. split and a 262% jump in sales. The stock now well over 1, 000 a share. 41:55 So AI tech giant NVIDIA has reported a blowout quarter. Obviously a blowout report. 42:00 I think everybody's expectations were sky high and like NVIDIA took it to the moon. I mean, it just really went high. 42:06 NVIDIA shares have been performing well up 90% this year. And its earnings report will certainly impact the AI trade. 42:13 NVIDIA shares up over 2, 000 % In the last five years. NVIDIA is truly the envy of the world. 42:19 Revenue is up by 265%. Imagine that, 265 % up. 42:25 Pretty big, right? While it isn't quite competing with companies like Samsung and Apple in terms of revenue, we have to remember 42:32 that NVIDIA is the newer entrant into the trillion dollar valuation club. Its biggest moneymaker has been AI 42:38 thus far, and it too is relatively new. Jeffries estimates that AI as a 42:43 percentage of total Chip revenue will go from 5%, which was back in 2022, to 25% by 2027. 42:51 So it's going to continue to drive growth, especially with all of these deep budgets and pockets from the 42:56 hyperscalers that are promised to spend. And NVIDIA remains the favorite given its control over the entire ecosystem. 43:04 As more time passes, we can very well see NVIDIA's annual revenue enter the 11 figure range. 43:09 We also have to look at GPUs, which are a big part of the company's income. NVIDIA is currently the market 43:14 leader in terms of GPUs, but this could be under threat. In Q4 2022, the company had a reported 43:22 82 percent market share of GPUs. This would be very impressive if not for the fact that it had 86 percent 43:28 of the market just a quarter before. A lot of this can be put down to the fact that it has fierce competition 43:33 from other companies like AMD and Intel. Still, over 80 percent of the market is nothing to scoff at, and 43:40 perhaps the company will recover some of its market share over time. 43:45 Now, let's talk about its employees. As of 2024, NVIDIA had just shy of 30, 000 employees. 43:52 For context, according to the Office of National Statistics, the average population of a medium sized town is 43:57 between 20, 000 and 75, 000 people. NVIDIA's employee pool has been steadily growing for the last few years. 44:04 With a reported 7, 974 employees just 10 years ago. 44:09 That's almost four times growth during that period. But how does this stack up with other big companies? 44:14 Honestly, it's relatively low compared to other tech companies in the field. Meta has over 67, 000 employees. 44:21 Apple has over 161, 000. And Intel has over 124, 000 employees. 44:28 But not to despair. After all, NVIDIA was only catapulted to the stratosphere in the last few years, and it might 44:33 take a while to grow its workforce. Also, its future workforce prospects are pretty impressive. 44:39 So we know that NVIDIA's big break of sorts has been through AI. The good news is that AI is on track to 44:44 grow very rapidly in the next few years. According to the CompTIA IT Industry Outlook 2024report, 44:51 the AI market in the U. S. alone is on track to be worth 594 billion by 2032. 44:57 That means a lot of projects will need the very same data centers and GPU processing that NVIDIA already provides. 45:04 What's more, the number of firms that don't use AI currently , will in the future is growing. 45:10 This means that NVIDIA will see not only more profits, but more people added to its workforce. 45:15 It's been reported that half of its employees earned over 220, 000 in 2023. 45:20 Of course, we had to compare this to other big tech firms. According to Comparably, the average salary at Meta is 141, 000 per year. 45:28 At Intel, it's 132, 000 per year. And at Apple, it's 143, 000 per year. 45:35 So yeah, Nvidia might not have as many employees right now, but it is beating out the competition when it comes to pay. 45:41 When you look at all of these, it is a bit easier to see what Nvidia is in. It is certainly a large company, but 45:47 it is newer to the trillion dollar club than others, and doesn't quite have the number of an Apple or a Meta. 45:52 But not only does it have impressive revenue stats at the moment, but it is at the frontier of a fast growing sector. 45:58 If the current growth rate of NVIDIA and AI continues, these numbers could look much different in a few years. Nvidia vs The World 46:11 We've looked at how NVIDIA stacks up to big companies in the tech space, but how does it compare to countries? 46:16 Yes, countries. NVIDIA's joined the league of corporations so big, they could be countries unto themselves. 46:23 We have to take into account NVIDIA's current valuation, which was $2.7 trillion. 46:29 Then we need to consider the GDP of different countries. Just the fact that this company is now worth more than most other countries 46:36 GDP in the world, except for 11. If Nvidia was a country, it would have a higher GDP than Russia, South 46:43 Korea, Spain, Turkey, and Saudi Arabia. Wow, that's a country we wouldn't mind joining. 46:48 When you think of Nvidia in the context of the whole world, you then begin to think of which countries are the most profitable for it. 46:54 After all, computers are used pretty much everywhere on the planet, but not every country will buy nvidia products at the same rate, which is 47:01 giving the company the most money. Luckily, we have a public earnings report from Nvidia to give us the answers. 47:07 In 2023, 26. 9 billion of its revenue came from businesses in the United States. 47:13 13. 4 billion came from Taiwan. 10. 3 billion came from China and 10. 2 billion came from other countries. 47:20 This was a bit of a shift from the previous year when income from the United States and Taiwan were almost the same. 47:25 In fact, in 2021, income from Taiwan and China eclipsed that of the United States, and this 47:30 had been the case for years. This means that in a few years, the United States overtook others 47:36 as the biggest moneymaker for NVIDIA, just as AI became the company's bread and butter. 47:41 But, when we think about it, All this makes sense. When you look at the countries spending the most money on AI, the 47:47 US is leading by a huge margin, spending more than twice what China did in the last 5 years. 47:52 So, if Nvidia's business model has become more focused on selling AI related products and services, 47:58 after all, many of the big AI companies are based in the US and much of its use is stateside. 48:03 That being said, there is another country that is gaining the lead. Third quarter of 2023, Nvidia's earnings 48:09 report showed an interesting trend. 15% of its revenue had come from Singapore. The country hadn't been really 48:14 high on its radar before. In fact, it was usually just classified along with others as other countries. 48:20 But now it was making a splash. How big of a splash are we talking about? Try over 400 million in just 48:26 quarter three, 2023 alone. It's hard to imagine any country outspending the US when it comes 48:32 to AI, but we could see Singapore becoming a bigger name, not only in terms of Nvidia's income, but 48:38 in the tech space as a whole. How AI (and Nvidia) Will Take Over The World 48:47 If you ask the average person what technology they were most excited about, They'd probably mention AI at some point. 48:53 There's a good reason for this. While scientists have been fascinated with AI as a concept for decades, the industry has 48:59 become much more public facing. A few years ago, many of us might not have thought of using AI day to day, 49:05 even though we kind of already were. But now, AI is growing on an individual and institutional level. 49:10 Take ChatGPT. When it first launched, it reached over 1 million users in just a year. 49:16 Five days! And this hasn't slowed down. In January 2024, the site saw 1. 8 billion visits. 49:22 And it's not just us going to AI these days, it's also AI going everywhere with us. Wearable devices like Fitbits and 49:29 Apple Watches have been popular for years, and are at the forefront of the wearable AI market. 49:34 This market is on track to reach 180 billion by 2025 alone. Whoever said AI was just a 49:40 fad was very, very wrong. Let's look at companies. 49:45 According to a report from MIT Sloan Management, 9 out of 10 businesses said that AI will 49:50 give them a competitive edge. This quest for a competitive edge means that companies you'd never imagine will get on the 49:56 AI train if they hadn't already. We also need to look at how much these companies plan to spend on AI. 50:02 According to a report from IDC, spending on generative AI alone will jump from 16 billion in 2023 to 143 billion in 2027. 50:11 These facts mean a few things for the world and for NVIDIA. First, it means a lot of money is going to 50:17 be going into the company's pockets. NVIDIA is making millionaires as their GPUs keep dominating 50:23 AI processing in data centers. It also means that the world we live in is going to look much 50:29 different in the future. And that's not just because of AI. NVIDIA has had a partnership 50:34 with OpenAI, arguably the top AI company in the world for years. Two AI titans, they're now prophesying 50:40 trillions of dollars in opportunity. Stratospheric predictions from NVIDIA chief Jensen Huang. 50:45 Over the course of the next four or five years, we'll have two trillion dollars worth of data centers. And then there's Sam Altman's 50:52 ambitious new venture. And this partnership is only getting bigger. Last year, it was reported that NVIDIA 50:58 and OpenAI were teaming up for a massive project that would see 1 million NVIDIA GPUs linked together by OpenAI's tech. 51:05 Currently, NVIDIA has supplied OpenAI with about 20, 000 GPUs, and look 51:10 at all the company has achieved. Imagine what would happen with 50 times that amount of computing power. 51:15 It's nothing like the world has ever seen before. The beauty of AI is that as of now, it is mostly untapped. 51:23 Yes, the fact that AI can pass law exams, create millions of images, communicate with us, and is embedded 51:29 in virtually every industry on the planet isn't even the height of it. But what else could there be? Two words. 51:35 Sentient AI. If superintelligence were to happen, AI would surpass us in every way imaginable. 51:42 And that terrifies some people. Most of all, Sam Altman, the CEO of OpenAI. 51:47 In his open statement, he said, Given the picture as we see it now, it's conceivable that within the next 10 51:53 years, AI systems will exceed expert skill level in most domains, and carry out as much productive activity as 51:59 one of today's largest corporations. With NVIDIA and OpenAI's plans to 52:05 harness the power of a million GPUs, perhaps they are planning to speed up the emergence of superintelligence. 52:11 One thing they are definitely pursuing is humanoid robots. Back in February 2023, NVIDIA, 52:18 OpenAI, Amazon founder Jeff Bezos, and other big names in the tech world teamed up to invest in a 52:24 startup called Figure AI that's working to develop, Humanoid Robots. OpenAI invested 5 million 52:30 while NVIDIA dropped a cool 50 million in the project, with 675 million raised in total. 52:36 Humanoid Robot, you think Tesla and Optimus, but I've been digging in to this company. It's an interesting round. 52:42 The numbers are big. What have you learned? Which is quite rare. You have Jeff Bezos's personal investment firm, NVIDIA coming in at 52:49 a 50 million investment, OpenAI coming in 5 million, of companies interested 52:55 in artificial intelligence, robotics, and these types of future technologies. So this is going to be quite 53:00 interesting to see how it all develops. Where Are The Founders Today 53:08 NVIDIA was the work of three visionary men, Jensen Huang, Chris Malachowsky, and Curtis R. 53:13 Priem, who had a dream and many cups of Denny's coffee. While the company might have soared to new heights, what happened to the men? 53:20 Chris Malachowsky serves as both a member of the executive staff and a senior technology executive at NVIDIA. 53:26 A lot of his current work has to do with its research organization and has authored almost 40 patents so far. 53:32 His work as a computer engineer has also earned him a lot of recognition, with Malachowsky getting honorary doctorates 53:38 from the University of Silicon Valley in 2022 and from his alma mater, the University of Florida, in 2023. 53:44 In 2019, he was inducted into the Florida Inventors Hall of Fame. And in 2023, the University of Florida 53:51 opened the Malachowsky Hall for Data Science and Information Technology. Over the years, Curtis R. 53:56 Preim has become known as the most low key of the NVIDIA founders. 54:01 He actually retired from NVIDIA in 2003, and spends his time off the grid. Also giving millions to his alma mater, 54:08 Rensselaer Polytechnic Institute. Fun fact, he founded the Preim Family Foundation and 54:13 his wife Veronica in 1999. The foundation is non operating, meaning it has no staff. 54:19 Instead, it spends its time giving away money for charitable deeds. With all the success that NVIDIA has 54:25 seen today, he admits he should have held on to some more of them, saying in an interview, I did a little crazy thing 54:30 and I wish I'd kept a little bit more. But don't feel too bad for him. He sold the rest of his shares for 30 million back in 2006 and 54:37 continues to live the high life. He reportedly lives in a 6 million home in California and bought a private 54:42 jet he calls Snoopy back in 2021. One member of the original NVIDIA gang 54:48 who held onto his shares is Jensen Huang who is the CEO to this day. Ironically he was the member of 54:54 the original three who had to be convinced to even join in. Along with acting as CEO. 54:59 Huang owns 3.6% of NVIDIA's stock, bringing his net worth to about $64.1 billion. 55:06 Not bad for a plan made in a Denny's booth. And after leading Nvidia for over 30 years, he seems to be grooming his son. 55:13 Former nightlife entrepreneur, Spencer Huang for success in the company. 55:18 Spencer joined Nvidia as a product manager a few years ago and it'll be interesting to see if he succeeds 55:23 his dad, like his co-founders. Huang has also given a lot of money to charitable causes in 2022. 55:30 He gave $50 million to his alma mater, Oregon State University In Retrospect 55:39 when it comes to tech companies, NVIDIA truly has a remarkable story. The company was started with 55:44 not much money and a dream to change its industry. In the beginning, its bread and butter was in the gaming market. 55:51 But it saw an initial failure with the NV1, and only a few years in, NVIDIA was on the brink of bankruptcy. 55:56 Then came the Riva 128. That basically saved NVIDIA from going under, and kept it on the path to greatness. 56:02 Then came NVIDIA's IPO, and the groundbreaking Xbox deal. As it entered the 2000s, the company 56:09 began to acquire other firms, strengthen its presence in the gaming sector, and found itself in a few controversies along the way. 56:16 But more important was that NVIDIA began exploring deep learning, and the possibilities of AI. 56:22 At the time, AI was not as well known and used as it is now. No one really knew if it would end 56:27 up being profitable, but NVIDIA chose to take a risk on it and its success. And when it comes to AI, 56:33 it paid off massively. Today, NVIDIA is the third most valuable company in the world with a valuation 56:39 of over a trillion dollars and has blown the competition out of the water. AI business, of course, NVIDIA really 56:44 the poster child for all this AI excitement because it makes the chips that power all that AI software. 56:50 Please welcome to the stage, NVIDIA founder and CEO, Jensen Huang 57:08 Thanks to NVIDIA, the world has gotten a taste of what AI can do. And since that train has left the station, there is no stopping it. 57:16 Right now, NVIDIA is at the forefront of the AI revolution. The space is bound to become even bigger in the next few years. 57:22 And NVIDIA's existing partnership with OpenAI is good news for its bottom line. A lot of money is coming into the AI 57:28 space as more data centers open up shop and consumer demand increases. However, we do have to mention 57:34 that this increase in AI use also means that the dreaded super intelligent AI might be upon us soon. 57:40 On top of this, NVIDIA and several other companies seem to think that humanoid robots are a 57:45 possibility for the near future. No one knows where they will go, just like we don't know what AI will look like in 2044. 57:52 Will AI become super intelligent? Will humanoid robots trigger the apocalypse? No one knows, but what we do know is 57:59 that for the foreseeable future, NVIDIA plans to be leading the AI charge. xplorist 180K subscribers Videos About 81 Comments rongmaw lin Add a comment... Pinned by Explorist @Explorist 4 days ago (edited) Visit our video's sponsor https://aura.com/explorist to get started on a 2-week free trial and see where your personal information is being sold. 10 Reply @Ruturaj2507 4 days ago Amazing video..... great work by explorist team ️ 12 Reply @akshaychavda1911 3 days ago Such a great work done in research and making this video !! Nice video 11 Reply @bluekarma4 2 days ago (edited) The only CEO I feel is a genuine good guy that deserves every bit of his success. 6 Reply Explorist · 1 reply @THOMPSONSART 2 days ago RESPECT! You earned it. 4 Reply @Sett86 1 day ago (edited) "Mr. Huang, have you heard about the 4th industrial revolution?" "Oh yeah, the AI thing" "yeah, turns out our chips are pretty fucking good at it" [counting fingers] "......... Nine" "Mr. Huang?" "One and nine zeroes" "Yessir, sounds about right." 5 Reply @Explorist 2 days ago Hey everyone! Let's do a fun activity. Do you think Nvidia is overvalued or in a bubble? Share your thoughts below! We'll revisit this in six months to see who was right. Can't wait to hear your predictions! 6 Reply Explorist · 6 replies @danstewart2770 6 hours ago (edited) Visualizing the difference between $1 million , $1 billion, & $1 trillion. If $1 were equal to 1 second: • 1 million seconds = 12 days • 1 billion seconds = 31 years • 1 trillion seconds = 31,688 years 1 Reply @keval507 4 days ago AFTER 2 MONTH FINALLY NEW VIDEO 4 Reply @thomassissay5719 9 hours ago When everybody digs for gold, you sell the shovell 1 Reply @RogerLo-ip2xp 1 day ago I like NVIDIA because they still support old GPUs of theirs like the one that I'm using on this PC, a GTX750ti, with drivers and software upgrades and support. This really touches a chord in my heart. Thank you, NVIDIA. 1 Reply 1 reply @CoreyChambersLA 12 hours ago There's not a huge difference in lifestyle between $70 billion and $30 million, except the yacht and staff will be smaller. 2 Reply @smatsoukis 12 hours ago GDP is the "income" of a country. Compare that to NVidia's "income", not capitalization. 2 Reply @bernl178 1 day ago (edited) Meanwhile Only one company in the world will not fix it’s 4090 power problem. That’s also reality. 2 Reply @dyu007 2 days ago Remember how WANG was ruined. Spencer Huang will not be able to fill in his father's shoe. 2 Reply @CoreyChambersLA 10 hours ago TCP forward slash IP is not a company. iReady is the company, and it's pronounced T.C.P.I.P. which is simply internet protocol. 2 Reply @velvetrealitytv 17 hours ago (edited) Taiwan is the balancer of power in the world..This is one of the best videos I have watched recently..Thank you. 1 Reply @talkabit27 4 days ago Waiting for long time 1 Reply @mrhassell 1 day ago Actually, NVidia started with $200, not zero. 1 Reply @jayantilalchavda6595 3 days ago Fascinating... Nvidia! 2 Reply @Valani-mo3qs 3 days ago All in all nice video..... 2 Reply @Yellow_Afryca 9 hours ago You’re saying Huang wrong. It’s not Hwang 1 Reply @mitchchang5329 2 days ago Great story. Amazing video! 1 Reply Explorist · 1 reply @fernandocortes1187 1 day ago 20:14 Intel Nvidia 1 Reply @user-vn1zb9ov8d 2 days ago OK, hands up who bought stock 6 months ago? Nah, me neither. Bugger. 2 Reply @ag687 2 days ago (edited) The lawsuit/fine wasn't for hiding crypto revenues in gaming category. It was for failing to disclose to investors that crypto sales were a 'significant' part of business. If it was about hiding sales in gaming, they would have been fined again. 1 Reply 2 replies @Constant_Instant_Distant 8 hours ago What do you get when you mix Artificial Super General Intelligence, Quantum Accelerated computing, and CERN? You get a gateway to another dimension we have no idea what its made off, we need to tread cautiosly Reply @dpactootle2522 1 day ago (edited) The rise of Nvidia is evidently the beginning of the AI singularity. It has never happened at this scale and speed in the history of the stock market. 1 Reply @savageintheconcretejungle5891 1 day ago ironic the biz plan was to make inexpensive chips and now they making the most expensive chips 1 Reply @happyatheists9361 14 hours ago Skynet! 1 Reply @llundber 1 hour ago Good video. However Jensen seems to pronounce his own name differently than you do? Reply @fredrikhansen2387 1 day ago Build on gamers and now they leave the gamers. I am now going to amd!! 1 Reply @MichaelHalsell 8 hours ago Trillion is the new sexy term being thrown around now? Reply @DhavalKriplani 1 day ago 2 Reply @user-ho1jz7zv5u 12 hours ago Im massaging my investment money as i watch 1 Reply @riaajjaair1196 2 days ago personally wouldnt call nvidia a company focused on selling AI atm, still a graphic chip manufacturer playing odd balls 1 Reply Explorist · 1 reply @kalasend 13 hours ago From zero?? Come the F on... 1 Reply @ashishtewani4686 2 days ago Your channel has so less subs dude!! The kind of content it gave me!! 1 Reply Explorist · 1 reply @ps3301 2 days ago (edited) Nvidia has beaten Intel finally. Amen. Nvidia products have real utility. Crypto tokens don't. 1 Reply @johntheaccountant5594 13 hours ago Huawei will probably lead Nvidia over the next 3 years when it comes to technology. 1 Reply Explorist · 2 replies