Demand for Nvidia chips is so high that Jensen Huang had to assure analysts the company was distributing them ‘fairly’

by MMC
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The company is seeing so much demand for its AI chips that its co-founder and CEO, Jensen Huang, has had to ensure the company allocates them “fairly.”

“We do our best to distribute allocations fairly and avoid allocating allocations unnecessarily,” Huang said on a call with analysts after the release of fourth-quarter results on Wednesday, according to a report. transcription.

Huang was responding to a question about how Nvidia allocates chips to all the companies – many of which are competitors – that demand them.

Huang added that Nvidia works with cloud service providers to meet their expectations and meet their deadlines.

“Why allocate something when the data center is not ready. Nothing is more difficult than leaving something waiting,” Huang said, saying Nvidia wanted to avoid “allocating unnecessarily.”

After all, companies involved in everything from healthcare and financial services to autonomous driving are getting into the AI ​​game.

“At our core, we want to allocate fairly, avoiding waste and looking for opportunities to connect partners and end users,” he added.

Shares of the chipmaker have seen a sharp decline over the past year since the AI ​​boom sparked by OpenAI’s ChatGPT propelled the technology into the mainstream.

“Accelerated computing and generative AI have reached a tipping point. Demand is increasing all over the world, across companies, sectors and countries,” said Huang in a press release Wednesday.

Nvidia shares have more than doubled in the past 12 months, leading analysts to wonder if the chip giant could soon breathless.

Nvidia shares rose 9.1% to $735.94 apiece in after-hours trading Wednesday following the earnings release. They are up 36% this year to date.

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