Huang Renxun: Nvidia's Acquisition of ARM Is a Rumor, There Will Be a Surprise at the Launch Next Week
Recently, NVIDIA released its second quarter financial report, with promising performance and new highs. The company's CEO Huang Renxun also accepted an interview with a reporter from Gamesbeat, a gaming channel under Venturebeat, and expressed his views on NVIDIA's current status and the development of the gaming industry.
On August 19th, local time in the United States, NVIDIA released its second quarter financial report for fiscal year 2021.
The report shows thatNvidia's second quarterRevenue was $3.866 billion, up 501% from $2.579 billion in the same period last year.Set a new historical high.
Among them, Nvidia's data center business revenue was US$1.752 billion, a year-on-year increase of 167%, exceeding the gaming business revenue ($1.654 billion) for the first time, becoming Nvidia's largest source of revenue for the quarter.
Some analysts said that although the current economic environment is not good, the epidemic has led to an increase in people's demand for remote work and online entertainment. Major cloud computing companies have increased their investment in data centers and purchased more chips, thus creating Nvidia's impressive data center performance.
but,Huang Renxun said that such revenue changes are not temporary phenomena caused by the epidemic. The scale of data center business will continue to expand, and this will also be the business that Nvidia will focus on developing in the future.
After the financial report was released, Huang Renxun was interviewed by Dean Takahashi, a reporter from Gamesbeat, a subsidiary of technology media VentureBeat, and had a brief exchange on data centers, the development of the gaming industry, the virtual world, etc.
also,Regarding the previous rumors in the industry that Nvidia will acquire ARM for US$52 billion, Huang Xiaoming also gave a personal answer.
Too long to read
- Huang Renxun said that the second half of 2020 is expected to be a great time for games because players will be addicted to playing games due to the epidemic.Even after the epidemic ends, the gaming industry still has a bright future;
- Nvidia's acquisition of ARM is a rumor;
- September 1st, GeForce Conference,It will give players a big surprise;
- Nvidia is less than 30 days away from bankruptcy, and this feeling is not going away;
- The virtual world has arrived and the future is accelerating.
Dialogue with Huang Xiaoming after the financial report was released: Acquisition of ARM is a rumor
GamesBeat:This is the first time that data center revenue is bigger than gaming revenue, right?
Jen-Hsun Huang:Yes, it's amazing because gaming revenue has been so high. We had more gamers this quarter than ever before, and we added 150 laptops.
GamesBeat:That definitely feels good because it’s a validation of the AI strategy, which is the data strategy.
Jen-Hsun Huang:Indeed, both the AI strategy and the data center strategy are working well. We are doing this right., AI processing will need to be accelerated, and the Ampere architecture is our biggest leap ever, it's a home run.
Additionally, the workflows and workloads in the data center are going to be broken down, they're going to be broken down into these containers that make up microservices. As a result, east-west traffic within the data center is going to hit a ceiling. So, we acquired Mellanox, which was a really good decision, and now these combinations are working.
Note: On April 27 this year, Nvidia acquired Israeli chip maker Mellanox for US$6.9 billion. In the first fiscal quarter after its integration into Nvidia, Mellanox contributed 14% in revenue to Nvidia.
GamesBeat:You said you think we're going to have a good second half in gaming. I do wonder how long this momentum will last. Some parts of the world are now back and people are able to go out, but in the U.S. we're still stuck indoors.What I want to know is, if people can go out again, will the strength of the game continue?
Jen-Hsun Huang:I think so, for two reasons.
First:There are some new players entering the gaming world during the pandemic, and once you’re in, you’ll be hooked.No matter how much or how little you play, you'll be addicted.
second:The number of ways people play games has greatly increased.People's creativity in playing games has also increased significantly.Whether it's social content, or all things Fortnite, and how they're hanging out in Fortnite, Roblox, and Minecraft. They're using games to create art, videos, movies, and mashups.
Of course, spectator sports as we know it will be very different. It's not just esports games like League of Legends, but Formula One is changing as well. F1 will become a form of esports, not just a race for professional racing drivers.
Games have evolved into many forms, so I think there is no going back.
GamesBeat:Will you release Ampere chips for gaming and desktops on September 1st?
Jen-Hsun Huang:Well, on September 1st, I have some very exciting news for you. But I don't want to reveal too much, I want to surprise the players.
GamesBeat:I thought you were going to make the ARM acquisition a surprise.
Huang: (Laughs) It’s just a rumor!Look forward to September 1st, when I'll tell you something fun about GeForce.
GamesBeat:Are you happy when Nvidia's market value becomes the number one American chip company?
Jen-Hsun Huang:Well, I actually think about it a lot. Although I have received many congratulations, but you know me, I still feel that this company is just barely staying afloat.
Note: On July 9, foreign media reported that Nvidia's stock price hit a new high, surpassing Intel to become the "most valuable" chip company in the United States, with a market value of approximately US$251.31 billion, while Intel's market value is approximately US$248.16 billion.
GamesBeat:So, you think there are still 30 days until bankruptcy?
Note: A long time ago, Huang Renxun once encouraged his employees by saying, "Remember, the company is only 30 days away from bankruptcy."
Jen-Hsun Huang:I didn't want to say this again, I don't know if you remember it, but I really felt that way, waking up every morning with a panic, thinking we were 30 days away from bankruptcy, and I had a lot of work to do. We had to save the company. We had a lot of partners, and we didn't want to let them down.so,This feeling has never left me.
GamesBeat:I think you could use a break.
Jen-Hsun Huang:No, I don't think so. I don't know why, but it's always difficult for people to change.
Of course, everything we are doing now is bigger than ever before, the risks are greater than ever before, and it requires a lot of attention.So, I still have a lot of work to do.
Over the next few years, we're going to see an acceleration in the convergence of the physical and virtual worlds. You're right at this intersection, and we're going to see a lot of progress here.
GamesBeat:I’m still waiting for that Metaverse (where virtual worlds are interconnected, like in Snow Crash and Ready Player One). It feels like we’re getting closer and closer.
Jen-Hsun Huang:indeed,The virtual world is coming. In fact, in many ways, it’s already here.
For example, we designed a factory in VR and then built a VR car based on robotics. These things have already happened.
This is all based on simulation technology, and today, this is how we build self-driving cars.
Our engineers are testing all of our self-driving cars in virtual Santa Clara, Munich, and Tokyo. Yes, these are all Metaverses. And they will continue to expand.
And we now have AI agents to help, so your designs will automatically get better tomorrow while you sleep.
Everything that is happening around the world right now is being accelerated, so our dream of merging the virtual and real worlds will soon come true.
References:
https://investor.nvidia.com/financial-info/quarterly-results/default.aspx
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