Nvidia reported record profits for its most recent quarter on Wednesday, driven by continued growth in artificial intelligence compute demand. The company posted $68 billion in quarterly revenue, a 73% increase compared to the same period last year.
Of that total, $62 billion came from Nvidia’s data center segment. The company also reported $215 billion in revenue for the full year.
Data Center Revenue Breakdown
For the first time, Nvidia separated its data center revenue into two categories. The company generated $51 billion in compute revenue, largely from graphics processing units, and $11 billion from networking products such as NVLink.
CEO Jensen Huang said demand for AI tokens continues to expand rapidly.
“The demand for tokens in the world has gone completely exponential,” Huang said during a call with analysts. He added that even six-year-old GPUs in the cloud are fully utilized, and pricing is rising.
No Revenue From China
Despite the recent lifting of U.S. export restrictions, Nvidia reported no revenue from chip exports to China during the quarter.
Chief Financial Officer Colette Kress said small quantities of H200 products for China-based customers were approved by the U.S. government but have not generated revenue. She added that the company does not know whether additional imports into China will be permitted.
Kress also noted growing competition in China, referencing recent IPO activity. She said Chinese competitors could disrupt the global AI industry over the long term.
NVIDIA’s AI Partnerships
During the investor call, Huang addressed Nvidia’s reported $30 billion investment discussions with OpenAI.
He said the company continues to work toward a partnership agreement and believes it is close. Huang also cited partnerships with Anthropic, Meta, and Elon Musk’s xAI. However, Nvidia’s filings with the U.S. Securities and Exchange Commission stated there is no assurance that an investment will occur.
Huang also responded to concerns about the sustainability of large capital expenditure commitments across the technology sector. He said compute investments are expected to translate into revenue growth.
“In this new world of AI, compute is revenue,” Huang said. He added that without compute there is no way to generate tokens, and without tokens there is no way to grow revenue. He said the industry has reached an inflection point where tokens are both productive for customers and profitable for cloud service providers.
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That’s bcz they get to monopolize the entire ai landscape.
No matter who makes ai , you’ll use 5000 dollar nvidia gpu for it . Making billions for him.
This is why ai is a bubble