NVIDIA Corporation (NVDA) Earnings Call Transcript & Summary

Yes, Safra, these are incredible times. On the one hand, we're seeing the slowdown of traditional compute scaling limited by physics. And this is making it more and more difficult for customers, all of us to do our computing and an ever decreasing cost and ever decreasing energy consumption so that we can do more. That fundamental trend has been foundational to the computer industry for as long as we've been in it together. And this is happening at a time when energy cost is going up, and we're all challenged by having to achieve net 0 and at a time when one of the most promising new applications or new workloads or new algorithm emerged, which is artificial intelligence. And so these -- this time is really quite extraordinary. My belief is what's going to happen is that the writing is on the wall, the trends are clear that all workloads, all of your workloads in the future will be accelerated. We've now accelerated about 5% probably of the many trillion dollars' worth of workload in the world. And over the course of the next 10 years, I'm very confident that all of our workloads will be accelerated. And by doing so, we'll drive cost out of our workload, will drive better energy efficiency. And by doing so, we could give ourselves the capacity to go do more. And we'll use that capacity, that increased capacity to apply it to one of the most important new applications, which is artificial intelligence. This ability for us to use data that you harness from your own daily businesses to find patterns and relationships and predict for you, automate for you the way you work and the products and services that you deliver. [Audio Gap] tremendous breakthroughs. And so I think that the next 10 years is going to be some of the most exciting times of our industry as we accelerate all of our workloads and as we automate everything we do from our businesses to the products we make.

Yes, we not only automate, but we actually embed artificial intelligence and machine learning into the applications. And this makes it unbelievably exciting. We are thrilled that you're bringing your AI solutions to OCI. So tell these folks the benefits that that's going to bring to customers.

Well, the industries around the world need big things from our industry. And I would say that the first thing that you need from us is, as I was explaining earlier, to find a way to allow you to do more without having to spend so much more and without having to consume so much more energy. And so that's at the core of everything that we do. Well, in order to make that happen, there are 4 things I would say that the 2 of us uniquely bring. The first part, of course, is that data is at the center of the way that we develop software in the future, and Oracle's heritage and expertise in data, data storage, data provisioning, data processing is foundational. Second, NVIDIA is an expertise in artificial intelligence, in the processing and the creation of AI from data processing, machine learning, training to the simulation of the AIs to the deployment of the AIs is second. Third, you do need a large infrastructure. The fact of the matter is, in order to create these AIs, in order to train and develop these AIs and deploy these AIs, you need infrastructure. And that infrastructure has to be energy efficient. And so it has to be accelerated at its core. This is the reason why our partnership and OCI's giant investment and deploying large-scale accelerated computing from its cloud is so foundational, third. And then lastly, our rich ecosystem of partners and developers and the network of all of our great solution integrated partners, Deloitte, for example, and many others around the world, all of you, all of our partners and developers are going to be able to take these, this capability and these solutions and bring it to the world.

It's fantastic. I mean, it is such an exciting time. And you're right. It is very much we've got to do more. We've got to spend less, spend less money, spend less resources doing it. And the fact that there's low-cost computing available and huge amounts of data to train the algorithms, this is this moment we've all been dreaming about really for decades since we started to do AI work in the old system days. Now one of the places where as much as making shopping more efficient and routing trucks better and all those things are great. But really, one of the most critical areas is saving lives. And so let's talk a little bit about health care and how you can use these technologies to really do the most important thing, save lives.

Yes, our partnership, one of the industries or the industry's health care and life sciences will benefit tremendously from accelerated computing, artificial intelligence and the work of our partnership. Over the course of the last 10 years, as we've been deeply involved in advancing artificial intelligence, some really amazing achievements have been made. You know the breakthroughs in computer vision has made it possible for transportation to be completely utterly revolutionized. And in the future, in 10 years' time, the automotive industry is no longer going to be a car industry, an industry, a classical industry, but a tech industry. And all of those cars are going to be -- they're going to discover their smartphone moment, and their business will be transformed. Of course, we're seeing this all over the place. We're seeing giant breakthroughs in natural language understanding and speech AI and conversational AI, and this breakthrough in large language models that is able to encode human knowledge so incredibly into a model that you can then apply to all kinds of new skills that it was never trained to do. Well, this -- these breakthroughs, these breakthroughs have led to some giant new opportunities and what I believe will be the digital biology revolution. [Audio Gap] we'll transform what was historically a science-driven industry in the future science plus engineering-driven industry, you're going to see incredible advances. And so if I could just say one more thing that you mentioned earlier, the work that we do together, NVIDIA has a platform called Clara, it is our work of passion of a computational platform for life sciences and health care has been integrated into the Broad Institute's Terra, a biomedical research platform is used by researchers all over the world. And one of the things that is really amazing because of AI, we can now use AI to understand the language of proteins and chemicals, all the way through gene sequencing all the way through the ability to do virtual screening by teaching an AI computational or quantum chemistry. It is absolutely amazing the breakthroughs that are happening right now. And I think our collaboration is going to be able to bring that to all of the health care researchers and companies all over the world.

With that, thank you. Thank you for what you're doing. Thank you for partnering with us so fabulously, and what a joy, look at this guy. Thank you. Thank you.

Thank you, everybody. Thank you, Safra.

Thank you. Thank you for everything we do.