Nvidia had another stellar quarter and reported this week that it had revenue of $ 4.73 billion. For the third fiscal quarter, which ended on October 25, an increase of 57% from the previous year.
We spoke with CEO Jensen Huang about these results, but we also got away from other topics, such as the environment for cartels and monopolies. The tech giants like Apple, Google, Amazon, and Facebook are facing more antitrust control these days, and I asked Huang if it affected Nvidia, especially as it tried to acquire Arm for $ 40 billion. Nvidia also said that GeForce Now will debut on iOS via the Internet, with Fortnite soon coming in a way that was limited due to Apple’s rules on cloud gaming.
I also asked him if he thinks the Arm deal will also make Nvidia more open than it might otherwise be. We also talked about the PC in relation to the next generation of consoles, and how Nvidia̵
We hope you enjoy the conversation. Here is an edited transcript of our interview.
GamesBeat: Congratulations on another great quarter. On anti-trust, I wondered – regulators and Congress are all going after the tech giants now. Is there anything that could affect Nvidia in any way, as with the ARM acquisition? What do you think about the antitrust environment?
Jensen Huang: There’s nothing on my radar. All the companies we are in are super competitive. ARM has giant customers. The new markets they want to grow into, they are the serious underdog. There is every reason to believe that by adding more horsepower to ARM, we will increase customer choice and increase innovation in the market. Our assessment is that the legislation will be quite favorable for this transaction.
GamesBeat: Do you think ARM can help Nvidia stay more open than usual?
Huang: ARM and Nvidia are very similar. Nvidia’s architecture is available in any cloud, in any computer manufacturer, in any shape and size. You can buy chips. You can buy systems. You can rent it for a dollar an hour. The reason our platform is so well adopted is because it is open. People talk about even reverse engineering of our architecture, and that’s fine. The architecture is probably the most abundantly accessible architecture outside of x86 in the world for general programming.
ARM is the same way. Their architecture is accessible to anyone who wants to come and pick it up. These are very similar and we have very similar attitudes to the availability of our architecture to customers.
GamesBeat: The other side of this is, do you want other companies to be more open and allow you to do more? For example, Apple and GeForce Now. The cloud games app can’t really happen except on the web. What do you think about others being open?
Huang: Our strategy is to be open, to have an open platform that everyone can use, no matter how they want to use it. But everyone has their own strategy. Ours happens to be just an open platform strategy.
GamesBeat: We have another console season here. What do you think about the PC versus the console right now? There is an interesting competition being designed.
Huang: I do not really think they are competitors. The things you can do on a PC, you can not do them on a console. But the good thing is that all the content developers have to raise the bar because the consoles are so powerful. Everyone is moving to raytracing, which is great. All this is good for games.
If you look at the way people use PCs these days, as you know, games have gone far beyond just games. It is used for art. It is used for sports. It is used for sharing and influencers. The PC is the best platform for all this. Not to mention, you need a PC anyway for video conferencing and the like. You might as well get an Nvidia GeForce with AI transmission and all that stuff. It’s good value for money.
GamesBeat: I see that games and data centers trade with the lead in your revenue back and forth. Do you expect this to continue to happen in the foreseeable future?
Huang: I hope the two companies continue to trade leads in the size of the company. It is a presumed conclusion that everyone in the world will be a player one day. There are only a billion active players today. One day there will be 7 billion, 8 billion active players. The growth potential for gaming is still far ahead of us. Gaming is the only entertainment that can be any entertainment. You and I both know that when the metaverse, we will spend a lot more time in game worlds, not just for games, but just to hang out, be with people, interact with people. The gaming market has a great future ahead of it.
On the other hand, I also know that AI is a new way of writing software, and this way of writing software will affect any industry. Because we can now write software that we otherwise could not before, computing could reach more places that we otherwise could not before. For example, who would have thought that a billion computers on the roads of the future could just run around? Who would have thought that in the future there will be thousands of computers roaming around warehouses and factories? These are all new applications that otherwise would not have been possible without AI.
Each building will be an AI. Everything becomes an AI. It will generate a lot of data, much more computing. The computer industry is getting gigantic because of AI. It is the catalyst that is missing. Writing the software is the last piece of the puzzle. If anyone can write the software, we can sell a computer. Now we can get computers to write software. These two companies are long-term secular opportunities.