AI market to be worth $600 billion, Nvidia exec says

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Speaking to a standing-room-only crowd at the Goldman Sachs Communicopia & Tech conference on Tuesday, Nvidia ( NVDA ) executive Manuveer Das laid out some startling numbers on the market for artificial intelligence.

According to Das, the total addressable market for AI will include $300 billion in chips and systems, $150 billion in generative AI software, and $150 billion in ubiquitous enterprise software. The figure represents “long-term” growth, Das said, though he did not specify a target date.

The total adds up to a $600 billion AI-fueled market opportunity tied to what Nvidia calls “accelerated computing.”

“It’s not just about the chips, it’s about the whole stack,” said Das, Nvidia’s vice president of enterprise computing.

Although AI has only recently boomed since last November, Nextdoor CEO Sarah Fryer said the value of AI has been building for years.

“It’s nothing new,” Friar told Yahoo Finance’s Brian Sozzi at the Communicopia conference. “ChatGPT brought generative AI and, I think, brought it into the cultural realm. But of course, we’ve all been investing in data for decades now, and we’re seeing that come to fruition.”

Still, Das explained that the industry is still in its infancy when it comes to accelerated computing.

“If you think about traditional computing systems based on CPU computing, the only thing that’s changed over the decades is the location — you’re in the cloud, you’re doing it on your phone, but it’s essentially the same kind of computing,” Das told the audience. “And more and more, companies’ operations are being done in computing. That means you need more computing in the world, which means you need more data centers. You need more energy. You need more horsepower, and it doesn’t. Durable.”

As Das describes it, Nvidia is capitalizing on the inevitability the company is creating, in which corporate operations become digital and grow more efficient in previously unimaginable ways.

“It’s time to start on a more sustainable path,” Das added. “We’re saying (with) accelerated computing, which is the same footprint, we can do 10 times, 100 times the work — that’s going to be the only way.”

Rodolfo Campos uses a virtual reality headset during a NASA Hybrid Reality Lab demonstration at the NVIDIA GPU Technology Conference showcasing artificial intelligence, deep learning, virtual reality and autonomous machines in Washington, DC, November 1, 2017 in Washington, DC.  / AFPSAULTO LOEB (Photo credit should read Saul Loeb/AFP via Getty Images)

Rodolfo Campos uses a virtual reality headset on November 1, 2017 in Washington, DC. (via Saul Loeb/AFP Getty Images)

Investors seem to agree. Nvidia stock has soared 232% to an all-time high this year, thanks to blowout earnings and its pole position in the AI ​​space.

“The easiest way to think about Nvidia is that we made this big bet,” Das said. “It’s been decades.”

Read more coverage of 2023 Goldman Sachs Communocopia + Tech Conference:

Allie Garfinkle is a senior tech reporter at Yahoo Finance. Follow her on Twitter here @agarfinks and above LinkedIn.

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