Technology giant and chip maker NVIDIA has announced that it has made $ 13.51 billion in revenue since May, a 101% jump from last year, according to the company's Q2 2024 earnings.
The record revenue can be attributed to a soaring demand for its artificial intelligence (AI) chips. The company also expects sales to jump 170% to roughly $16 billion in the current quarter and plans to buy back $25 billion of its stock.
"A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” NVIDIA founder and CEO Jensen Huang said in a statement.
“We expect sequential growth to be driven largely by data center,” said NVIDIA CFO Colette Kress on the earnings call.
Ever since OpenAI launched ChatGPT in November 2022, the demand for AI-powered technology has only been growing. Tech companies ranging from Microsoft, Google, and Meta to numerous customer service software vendors like Drift, InMoment, and Dialpad, have announced or incorporated some kind of generative AI tool into their offering. Even the government is using AI to safeguard national security.
Indeed, the potential of generative AI is huge. As the adoption spreads into every industry, there are privacy and safety concerns around the use of such technology. We have yet to see if the benefits will outweigh the risks.
