It's Official, OpenAI Is Becoming A Multi-Trillion Dollar Hyperscaler

at least, according to Jensen

In a marathon podcast lasting 1 hour & 44 mins, Jensen Huang last week expounded on all things AI related, and you can watch his performance on YouTube here. While there were many interesting takeaways from the session, mostly reinforced learning of what he has previously stated, our attention was drawn to a discussion about his recent strategic partnership with OpenAI, a topic we discussed in some detail here:

In that piece, we speculated the following:

What if NVIDIA could find a way to get in on the recurring revenue business model on a massive scale, just like the hyperscalers? Well, this may be exactly what this partnership with OpenAI accomplishes for NVIDIA. Given that there’s no mention of any involvement by Oracle, Microsoft etc, could they be effectively cutting out the middle men and heading down the path of leasing their own GPUs directly to OpenAI?

Well now, we basically have confirmation from Jensen that is more or less the plan, albeit with some ambiguity remaining regarding the finer details. We also got Jensen’s view on which company will be the next to join the multi-trillion dollar market cap club as well as his assertion that AI-generated revenues are already around the $1 trillion mark.

There’s a lot to unpack from this podcast, let’s dig in…