Nvidia's AI labs are generating massive revenue for the company, with nearly $50 billion invested in these research facilities. This significant outlay has not gone unnoticed by analysts, who have revealed that Colette Kress, Nvidia's chief financial officer, expects demand from these labs to continue growing.
According to a recent statement made by Kress on August 26, the AI labs Nvidia backs with its own balance sheet will contribute roughly a quarter of its business next year. This marks a significant shift in focus for the company, as it has traditionally relied more heavily on direct sales and manufacturing. The increased investment in these labs is seen as a major driver of this growth.
The implications of this trend are far-reaching, with many industry experts predicting that Nvidia will continue to prioritize its AI research and development efforts in the coming months. As demand for these chips continues to rise, it is likely that Nvidia will remain committed to investing heavily in its labs to meet this growing demand.