Nvidia, the top chipmaker and most valuable global company, announced record quarterly profits on Wednesday, driven by rising AI compute demand. CEO Jensen Huang noted, “The demand for tokens has accelerated exponentially. Even our six-year-old GPUs in the cloud are fully utilized, with prices rising.”
The company reported $68 billion in revenue for the quarter, a 73% year-over-year increase, with $62 billion from its data center business. Nvidia segmented data center revenue into $51 billion from compute (mainly GPUs) and $11 billion from networking products like NVLink. The annual revenue totaled $215 billion.
No revenue came from chip exports to China, despite eased U.S. export restrictions. CFO Colette Kress stated, “While small H200 product exports to China were approved, there’s no revenue yet, and future imports remain uncertain.” Kress also mentioned potential competition disruption from recent Chinese IPOs, notably Moore Threads’ December IPO.
Huang addressed Nvidia’s upcoming OpenAI investment, estimated at $30 billion, stating, “We are progressing towards a partnership. We’re close.” Partnerships with Anthropic, Meta, and xAI were also mentioned, though Nvidia’s SEC filing noted no surety of investment.
Huang commented on tech firms’ capex commitments, stating, “Compute is revenue in the AI realm. Without it, generating tokens and growing revenues is impossible. We’ve hit a turning point and are producing profitable tokens beneficial to customers and cloud providers.”