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In Monday’s keynote at Nvidia’s GTC 2024 event, CEO Jenson Huang kept repeating the phrase “AI Factory.”
“In the last industrial revolution, the raw material going into the factory was water,” Huang told TechCrunch in an interview after the keynote. “And the product was electricity.”
He was comparing this — turning raw materials into something else of value — to the idea of data centers, which are pure financial pits. “There is a new industrial revolution happening here [server] “The rooms: I call them AI factories,” Huang said. “The raw material that goes in is data and electricity. What comes out of it is data codes. The code is invisible and will be distributed all over the world. It is extremely valuable.”
This distinction makes a lot of sense in a world where Nvidia benefits greatly if it can convince companies to think about data centers and AI tools in a different way. “Last time, data centers entered the cost centers and capital expenditures of your company. You think of it as a cost. But a factory is a different thing. “It makes money,” he said. “The new world of generative AI has a new form of factory.”
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