TMTB: Nvidia's CEO Jensen on Dwarkesh Podcast - Key quotes (NVDA)

Overall - sounded good. Don’t think anything in here that can be attributed to the intraday selloff…

Jensen Huang, CEO NVDA

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1. Margins, Pricing Power & TCO Dominance

“Nobody can demonstrate to me that any single platform in the world today has a better performance-TCO ratio. Not one company. Dylan’s InferenceMAX is sitting out there for everybody to use, and not one — TPU won’t come, Trainium won’t come. I would welcome Trainium to demonstrate their 40% cost advantage that they claim all the time. It makes absolutely zero sense. On first principles, it makes no sense.“

“Nvidia’s margin is 70%. But ASIC margins are 65%. What are you really saving? You’ve got to pay somebody. The ASIC margins are incredibly good, from what I can tell.”

“We never do [highest bidder]. You set your price and then people decide to buy it or not. I understand that others in the chip industry change their prices when demand is higher, but we just don’t. I prefer to be dependable, to be the foundation of the industry. If I quoted you a price, we quoted you a price. That’s it.”

“If one of our partners built a one-gigawatt data center, that one-gigawatt data center better deliver the maximum amount of revenues and tokens. We are the highest tokens-per-watt architecture in the world.“

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2. Software Commoditization — The Bull Case

“I actually see the opposite of what people see. I think the number of agents is going to grow exponentially, and the number of tool users is going to grow exponentially. It’s very likely that the number of instances of all these tools is going to skyrocket.“

“Today we’re limited by the number of engineers. Tomorrow, those engineers are going to be supported by a bunch of agents. We’re going to be exploring the design space like you’ve never seen before, and we’re going to use the tools that we use today. I think tool use is going to cause the software companies to skyrocket.“

3. Revenue Concentration & Customer Mix

“You say 60% of our customers are the top five, but most of that business is external. Most of Nvidia in AWS is for external customers, not internal use. Most of our customers at Azure — obviously all of our customers are external. The reason they favor us is because our reach is so great. We can bring them all of the great customers in the world.”

“Anthropic is a unique instance, not a trend. Without Anthropic, why would there be any TPU growth at all? It’s 100% Anthropic. Without Anthropic, why would there be Trainium growth at all? It’s 100% Anthropic. I think that’s fairly well known and well understood. It’s not that there’s an abundance of ASIC opportunities. There’s only one Anthropic.“

“I’m not offended by other people using something else and trying things. If they don’t try these other things, how would they know how good ours is? Sometimes you’ve got to be reminded of it. We have to continuously earn the position that we’re in. Look at the number of ASICs that have been canceled. Just because you’re going to build an ASIC — you still have to build something better than Nvidia. It’s not that easy. Nvidia’s got to be missing something, seriously.“

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4. Competitive Moat & Defensibility

“The input is electrons, the output is tokens. In the middle is Nvidia. The transformation of electrons to tokens and making those tokens more valuable over time is hard to completely commoditize. The amount of artistry, engineering, science, and invention that goes into making that token valuable — the manufacturing, all of the science that goes in there is far from deeply understood and the journey is far from over. I doubt that it will happen.“

“We’re the only company in the world that’s cranking it out every single year. Big leaps, every single year. You’re going to have to go find another ASIC team in the world where you can say, ‘I can bet the farm, I can bet my entire business that you will be here for me every single year. Your token cost will decrease by an order of magnitude every single year. I can count on it like I can count on the clock.’”