Nvidia just scored a massive AI win, but Jensen Huang has regrets

Nvidia is back in the news only days after shocking everyone with a $4 trillion market capitalization. This time, it’s the focus of a $40 billion data center megadeal that includes Microsoft and BlackRock.

The three companies are working together to buy Aligned Data Centers. If the transaction goes through, it will speed up the building of AI infrastructure in the U.S. and Europe. Nvidia sees this as yet another strong indicator that its chips will be important for AI in the future.

At the same time, Nvidia’s power throughout the globe is also being tested. China’s prohibition on GPU imports and AMD’s improving competitiveness are making the AI arms race even more heated.

Nvidia’s method of controlling everything from hardware to software, on the other hand, keeps getting results that few other companies can match.

That could be why CEO Jensen Huang is talking more and more about missed opportunities.

He said in a recent interview that Nvidia should have put more money into CoreWeave, an infrastructure company, and Elon Musk’s xAI.

The only regret I have … is that I didn’t give him more money.

Huang’s comments demonstrate that Nvidia recognizes the stakes are becoming higher for a company that is already redefining what AI can achieve.

<em>Nvidia CEO Jensen Huang said the company should have put more money into CoreWeave and Elon Musk's xAI.</em>Image source&colon; Kevin Dietsch&sol;Getty Images
Nvidia CEO Jensen Huang said the company should have put more money into CoreWeave and Elon Musk’s xAI.Image source&colon; Kevin Dietsch&sol;Getty Images

Nvidia’s mastery over the whole stack, not just processors, is what makes it the leader in AI.

The H100 and H200 GPUs are currently the best in the business for training and using large AI models. But its lead over the competition goes beyond silicon.

Nvidia is creating what experts are calling an “AI operating system” with its CUDA software ecosystem and tight developer lock-in. This platform is so complete that even trillion-dollar corporations like Microsoft and Amazon now rely on it.

It’s why the $40 billion purchase of Aligned Data Centers is more than simply a real estate deal.

Microsoft needs the physical space. BlackRock wants to invest in infrastructure. But Nvidia’s processors will run the AI workloads that will make it all worth it.

Related: Samsung, Apple AI take different approaches to AI surge

This isn’t just a theory. Microsoft recently released the GB300 NVL72 cluster on Azure, which connects more than 4,600 Nvidia GPUs into a single supercomputer-style accelerator, a record for Azure.

That’s the type of processing power that OpenAI and other cutting-edge laboratories require to run their next-generation models.

And it’s not only the U.S. becoming bigger. In Europe, Nscale, which is located in the UK, will send 200,000 Nvidia GPUs to Microsoft data centers.


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