Jensen Huang's Latest Important Statement: Chip Industry Will Not See Recession for Some Time, Scale Needs to Expand 5 to 10 Times

TechFlow reports, on July 24, NVIDIA CEO Jensen Huang and Axios co-founder Mike Allen held an extensive and in-depth discussion on the current state of artificial intelligence. Huang stated that although the chip industry has long experienced cycles of boom and bust, "this time is different." Even considering the historically highly cyclical fluctuations of the chip industry (as shown in the figure), the current boom still has room for continued development.

When asked whether the industry is about to face a downturn, Huang answered: "No, it will not happen for some time to come. This time is different because this is not driven by demand." Huang further explained that the current AI boom is not driven by consumer demand, whereas consumer demand has long been the main driving force of the industry. The current AI boom is industry-driven, meaning that the core technology of computers is changing. We need to establish a completely new infrastructure layer globally. We already have energy, the internet, roads, and railways; now we need to build an intelligence layer of artificial intelligence, that is, adding another layer of infrastructure on top of these foundations. And this layer of infrastructure relies on chips. I think our semiconductor industry may need to be five to ten times larger than it is now... the current industry scale is too small. Everything is extremely scarce because this is not a cyclical problem, nor is it caused by consumer demand, but rather fundamental, infrastructure-related factors. Therefore, the entire industry is in a state of shortage. I think we must expand the scale of this industry several times more. (Jin10)