Mad Money w/ Jim Cramer — November 27, 2024 Episode Summary
Host: Jim Cramer
Featured Guest: Jensen Huang, Co-Founder, President, and CEO of Nvidia
Interviewer: Marc Benioff, CEO of Salesforce
Release Date: November 28, 2024
Special Edition Focused on Nvidia and the Future of AI
In a special Nvidia-centric edition of "Mad Money," host Jim Cramer welcomes Marc Benioff, CEO of Salesforce, to engage in an in-depth conversation with Jensen Huang, the visionary CEO of Nvidia. This episode delves into Nvidia's groundbreaking advancements in artificial intelligence (AI), their strategic partnerships, and the company's exceptional market performance.
Nvidia’s Revolutionary Impact on Computing and AI
Jensen Huang opens the discussion by emphasizing Nvidia's pivotal role in revolutionizing computing through accelerated computing. He explains how Nvidia's technology supplements traditional CPUs by offloading parallel tasks, thereby enhancing efficiency and performance.
Jensen Huang [05:27]: "We offload that 95% of the time and we run it 100 times faster."
He highlights the introduction of the Blackwell system, a state-of-the-art AI computing platform designed to handle complex tasks across various industries, including healthcare, finance, manufacturing, and climate technology.
Jensen Huang [06:30]: "This computer here will replace thousands of general-purpose computers. The amount of energy that we save is incredible."
Strategic Partnerships and Market Dominance
Marc Benioff probes into Nvidia's extensive partnerships and market strategy. Jensen Huang elaborates on Nvidia's collaborative approach, integrating their technology with leading cloud providers and tech giants to ensure widespread adoption.
Jensen Huang [12:27]: "We’re a full-stack software company and we design the entire computing system. We sell it in parts so that everyone can enjoy Nvidia."
The conversation touches on Nvidia’s collaboration with companies like Microsoft, AWS, Google Cloud, and others, reinforcing Nvidia's position as a cornerstone in the AI and computing ecosystem.
Jensen Huang [13:00]: "Our technology is integrated into all these computer makers and the world connects it together. That's the reason why Nvidia is everywhere."
Artificial Intelligence: Transforming Industries and Creating Opportunities
The discussion shifts to the transformative power of AI, with Jensen Huang illustrating how Nvidia's advancements are not just technological feats but also catalysts for industrial growth and innovation.
Jensen Huang [10:00]: "We could reduce the time that it takes to go through the entire search space of drugs and proteins and targets. And that search space is just gigantic. It's impossible for humans to do it. We can now, because computers with artificial intelligence can understand the language biology, we could sort through that a lot more quickly."
He underscores the potential of AI in accelerating drug discovery, enhancing manufacturing processes, and even revolutionizing climate science.
Jensen Huang [46:20]: "Artificial intelligence has its two greatest opportunities. The hardest one is to learn the language of life and that's healthcare. The other is to understand physics, predict the climate. The ability to understand these two things is so profound to society."
Nvidia’s Market Valuation and Future Prospects
Marc Benioff expresses admiration for Nvidia’s remarkable market valuation, which has soared to $2 trillion, positioning the company alongside tech giants like Apple and Microsoft.
Marc Benioff [17:25]: "Since we spoke, Nvidia's casually tacked on another trillion dollars in market cap. This is a company with very little direct consumer contact, yet it's achieved trillions of dollars in market impact up there with the likes of Apple and Microsoft."
Jensen Huang attributes this success to Nvidia's foundational contributions to computing and AI, asserting that their technology underpins a vast array of industries worth $100 trillion.
Jensen Huang [13:06]: "The foundation, the single most important instrument of humanity is computing. The impact of the work that we do to all these industries is absolutely enormous."
Democratizing AI and Future Innovations
Addressing the accessibility of AI, Jensen Huang discusses Nvidia’s initiatives to democratize AI technology, making it easier for individuals and businesses worldwide to leverage advanced computing power without requiring extensive computer science knowledge.
Jensen Huang [28:40]: "We’re going to make computers smarter so that they don't have to learn computer science to program a computer. The computer should just understand what we want and what we intend."
He envisions a future where AI seamlessly integrates into everyday devices and industrial applications, driving productivity and fostering innovation across all sectors.
Personal Insights: Jensen Huang’s Journey and Leadership
The conversation takes a personal turn as Marc Benioff explores Jensen Huang’s background, shedding light on his immigrant upbringing and the hard-working ethos that fuels his leadership style.
Jensen Huang [31:32]: "We grew up working hard. My parents worked incredibly hard today. I think that part of my DNA is the immigrant work ethic."
Huang shares anecdotes from his early career, including his time working at Denny’s, illustrating the resilience and dedication that have been instrumental in building Nvidia into a tech powerhouse.
Jensen Huang [45:38]: "Game was just the first application. We were so good at making that chip for games that people thought we were a game company."
Nvidia’s Vision for Sustainable and Ethical AI Development
Towards the end of the episode, Jensen Huang addresses global concerns about AI, emphasizing Nvidia’s commitment to ethical AI development and the importance of sovereign AI for different countries to harness their cultural and data resources responsibly.
Jensen Huang [37:43]: "Every country should harvest, process the data of their culture and turn it into intelligence that their own society can use."
He advocates for a balanced approach where AI advancements contribute positively to society, creating jobs and enhancing productivity without displacing the workforce.
Jensen Huang [36:21]: "This is going to create jobs. It's going to make companies more productive. When companies are more productive, their earnings improve or their revenues go up. When that happens, they hire more people."
Closing Remarks
The episode concludes with mutual expressions of gratitude. Marc Benioff thanks Jensen Huang for his invaluable contributions to technology and society, while Huang reciprocates by acknowledging the support from Nvidia’s shareholders.
Marc Benioff [47:15]: "I do want to thank you for the contribution you've made to so many people who watch our show who believe in you and are correct to do so."
Jensen Huang [47:26]: "I'm grateful for all of your support. Thank you."
Notable Quotes
- Jensen Huang [05:27]: "We offload that 95% of the time and we run it 100 times faster."
- Jensen Huang [10:00]: "We could reduce the time that it takes to go through the entire search space of drugs and proteins and targets."
- Marc Benioff [17:25]: "Since we spoke, Nvidia's casually tacked on another trillion dollars in market cap."
- Jensen Huang [28:40]: "We’re going to make computers smarter so that they don't have to learn computer science to program a computer."
- Jensen Huang [37:43]: "Every country should harvest, process the data of their culture and turn it into intelligence that their own society can use."
- Jensen Huang [36:21]: "This is going to create jobs. It's going to make companies more productive."
Conclusion
This episode of "Mad Money" provides a comprehensive look into Nvidia's extraordinary journey under Jensen Huang’s leadership. Through strategic innovation in AI and computing, robust partnerships, and a visionary approach to technology, Nvidia has positioned itself as a cornerstone of modern industry. For investors and tech enthusiasts alike, this conversation underscores the vast potential and enduring impact of Nvidia’s contributions to the future of technology.