Nvidia shows no signs of AI slowdown after over 400% increase in data center business

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Nvidia finance chief Colette Kress told investors on Wednesday that cloud providers were seeing an 'immediate and strong return' on investment.

Nvidia's revenue more than tripled in the fiscal first quarter and its data center business grew by more than 400% from a year earlier.

Now Nvidia is signaling to investors that the customers spending billions of dollars on its chips will be able to make money off AI, too. It's a concern that's been swirling around the company because there's only so much cash clients can burn on infrastructure before they need to see some profit. Kress also said newer Nvidia hardware would have an even stronger return on investment, citing the company's HDX H200 product, which combines 8 GPUs, providing access to"That means for every $1 spent on NVIDIA HDX H200 servers at current prices, an API provider serving Llama 3 tokens can generate $7 in revenue over four years," Kress said.

"All of the work that's being done at all the are consuming every GPU that's out there," Huang said.

 

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