Mad Money w/ Jim Cramer 11/27/24

Summary

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

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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.

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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."

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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."

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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."

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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."

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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.

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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."

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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."

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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."

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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."

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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.

Transcript

[Jim Cramer]

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[Jensen Huang]

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[Jim Cramer]

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[Jensen Huang]

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[Jim Cramer]

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[Jensen Huang]

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[Jim Cramer]

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[Jensen Huang]

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[Marc Benioff]

My mission is simple to make you money. I'm here to level the playing field for all investors. There's always a bull market somewhere, and I promise to help you find it. Mad Money starts now. Hey, I'm Kramer. Welcome to a special Nvidia focused edition of Mad Money. Welcome to Cramerca. Regular viewers know that I've been pounding the table on Nvidia for years. I've watched the stock shoot up 2500% in just the last five. Artificial intelligence and its accoutrements keep flitting in and out of fashion on Wall Street. But when it comes to AI and Nvidia in particular, we should remember the data center filled with Nvidia chips is not some fleeting, finite tale. It's one of the greatest stories ever told. Let me give an example. When I was in Salesforce's Dreamforce conference, Salesforce CEO Marc Benioff sat down with Jensen Huang. He's the CEO of Nvidia. After inking a cooperation agreement regarding Salesforce's new agent, Force rollout, Jensen opined on the state of AI, a field he practically created. More important, Jensen talked about how we haven't even scratched the surface of what can be done with artificial intelligence. Take a look.

[Jensen Huang]

This is the best nobody, nobody should miss the next decade. Would you agree with that? You're not going to want to Miss this movie? Yeah, you're not going to want to miss this movie. I think the next 10 years, the breakthroughs that we're going to have in digital biology, the breakthroughs and just helping diagnosing disease, the breakthroughs in science, we're going to have so many scientific assistants.

[Marc Benioff]

Moments like these remind me that on Wall street and videos role is often misunderstood. And video intends to make ever more powerful chips that can do unimaginable things. Ultimately, I will end up performing many miracles. I'm skeptical of many of the initiatives we have now. They tend to be old things that would have been done anyway, things that are just being rebranded as AI. But one thing we know for sure is that Nvidia has and will be at the forefront of whatever AI does in the world. That's why when Nvidia CEO Jensen Wong talks, I listen. It's also why tonight we're taking you back to my exclusive one on one conversation with the man I call the Da Vinci of AI himself. Direct from Invidious Developers Conference in March. We discussed chip demand, the company's stock split, Nvidia's growing list of partners, and even got to talk about how Jensen got to where he is today. Take a look. I am with Jensen Huang and we are at what some people are calling Jensen the Woodstock of AI. But isn't it much more than that? Isn't about a change in everything we do when it comes to digital, when it comes to creating countries, thinking you're changing that? Isn't that what we're doing out here?

[Jensen Huang]

Yeah. This is an incredible conference. This is Nvidia's developer conference. Everything that we do starts with software. Everything we do starts with software. And everything we do is in service of all the software developers who are solving these really difficult algorithms. We are represented by $100 trillion of industry here. Healthcare is here, financial services are here. Manufacturing, industrial, automotive, climate tech, you know, holy cow, communications is here, Consumers are here.

[Marc Benioff]

But people always think of you as hardware. You're talking about a different platform, a system that frankly may be unassailable from competitors. Because once all these companies get involved with you, they're going to stick with Nvidia.

[Jensen Huang]

It's a very specialized way of doing computing called accelerated computing. And what we do is this, Jim, this is the observation. A long time ago, 30 years ago, we observed that the CPU is really good at many things, but there's some things it's surprisingly ungood at. Parallel things, things that you could distribute across a large number of processors. And so what we did was we added Nvidia to a cpu. We connected it to a cpu, offload the work that the CPU is not good at, and we run that work insanely fast. Well, surprisingly, that work that the CPU is not good at represents 95% of the time that is spent in computing. We offload that 95% of the time and we run it 100 times faster.

[Marc Benioff]

But you're talking about a total do over of all technology. You're talking about everything. Our country's building new plants that are using old technology. If that's the case, it's wrong.

[Jensen Huang]

Well, we should build amazing semiconductor plants here, and we'd be more than happy to build all kinds of chips here. But it's very clear that in the future that general purpose computing, it's like a general purpose, almost anything, you know, general purpose instrument of any kind. It's not very efficient. There are many types of things that we want to do very efficiently. Computation of mathematics, we want to do very, very efficiently. And so as a result of doing it efficiently, you drive the cost down, you use less energy. One of our computers, this is our latest generation. This is the chip that goes into it. This is the largest chip the world's ever seen. This is beyond the limits of physics. We had to invent some new technology to make it possible to do how many 208 billion transistors in that? Gosh, it's even harder.

[Marc Benioff]

What we're looking at.

[Jensen Huang]

Yeah. In this little tiny part in the middle.

[Marc Benioff]

And what should that cost?

[Jensen Huang]

This will cost 30, $40,000.

[Marc Benioff]

And how much did you spend to.

[Jensen Huang]

Develop the very first one? The R and D budget of this generation is probably something like $10 billion.

[Marc Benioff]

10 billion, not million dollars. And you deserve the right to be able to recoup that when you're doing it.

[Jensen Huang]

Well, we're going to do our very best job. And this computer here, this computer, name of that computer, this is called the Blackwell computer. This computer here has. Yes, a mathematician. Yeah, really terrific mathematician. And this computer here will replace thousands of general purpose computers. This is the part that's incredible. In fact, what's amazing is that the cables of connecting last generation general purpose computers, the cables of connecting them costs more than the price of one of these computers. The amount of energy that we save is incredible. Megawatts and megawatts and megawatts. Because of this, we made it possible for the computer to write software by itself. It is so insanely fast. Now the software can write. The computer could write its own software. And we call that Artificial intelligence.

[Marc Benioff]

So if that's the case, why do we still need us?

[Jensen Huang]

Well, we still have to guide the software. We have to create the algorithms such that the computer can go write software. And that algorithm is called deep learning. Yes. Really quite a remarkable thing that happened the last.

[Marc Benioff]

If we ask it questions, we inference, it speaks our language.

[Jensen Huang]

Well, if you ask it a question, first of all, it not only recognizes the words, but it understands your meaning. It understands the meaning because nuance. Oh, sure, you can give it a. You said I would like to. First of all, I'm going to let you read this book, read Moby Dick, and then I'm going to ask you a whole bunch of questions about it. And so first it goes off and reads it and it takes, you know, a flash of.

[Marc Benioff]

But does it understand why Ishmael is just completely driven by Moby Dick?

[Jensen Huang]

Absolutely, because it saw it read the end of the story. It read the endless story. And not only that, it's read a whole bunch of other stories. And so it understands. It understands the context of the conversation, but it also has encoded within it a lot of things that it's already read from society.

[Marc Benioff]

Okay, but you're describing something that's different from earnings per share. You're describing wonderment. You're describing it creating something that can replace trillions of dollars of what we don't need anymore. Do it faster, do it more productively, do it cleaner. Everything has to be replaced.

[Jensen Huang]

There's a lot of waste in the world, right? There's a lot of waste in the world. Oftentimes we can't chase it down. Of course, there's a lot of wasted energy used in doing computing. And now with accelerated computing, we could make it a lot more efficient. There's a lot of ways in just about every single industry. The challenge is that we've never been able to use a computer to understand the information of that industry. One of the things that's really exciting is we've been able to sequence genes, but we've never been able to understand what it means. We've been able to.

[Marc Benioff]

So we didn't understand what the proteins do.

[Jensen Huang]

We can begin to understand what a protein does.

[Marc Benioff]

Well, if we do that, then we can do drug trials in. In 60 days instead of 6 years. So companies will tackle the tough illnesses that they can't afford to tackle.

[Jensen Huang]

That's exactly right. At the very minimum, you still have to go through trial and do trials on people and things like that. But 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.

[Marc Benioff]

Well, how about the last frontier? Can it understand a factory?

[Jensen Huang]

Well, the last frontier, we have to teach it to understand physical things. It has to understand that when you drop something, it falls to the ground, but it doesn't go through the ground. You have to understand that mechanical hinges work in a particular way. And so this mechanical hinges work in a particular way or the laws of physics. This is no different than word sequences and sequences of sentences turned into paragraphs and so on and so forth. The computer can understand, can learn to understand physics and learn to understand mechanical things.

[Marc Benioff]

But can it also learn.

[Jensen Huang]

Once it does that, then we can understand how to compute, how a factory works.

[Marc Benioff]

Can you understand Big Mac, Fry's Diet Coke?

[Jensen Huang]

It's common sense.

[Marc Benioff]

It's common sense.

[Jensen Huang]

It's common sense. And therefore, of course, of course, if you. If you order fries, you should also, you know, recommend some diet.

[Marc Benioff]

Does it bother you that in the end, we're trying to figure out whether it's $1 trillion for Nvidia, 300 billion for AMD? Are these two pedestrian, these questions pedestrian, versus the 10 years you've worked together?

[Jensen Huang]

Well, first of all, we do very different things. Nvidia is a accelerated computer computing company. If you look at the things that we do, we build the chips, the systems, the networking, and so on and so forth, the entire data center, practically all the software that goes into it, and then we sell it in parts. The reason why we sell, and that is what confuses people, they think that Nvidia is a chip company because we sell everything in parts, right? The reason we do that is so that our customers could integrate Nvidia's technology into their data centers however they like. Everybody's data centers are different. Everybody's systems are different. And so when we build up the whole thing, we make it work, but we sell it in part. So that fits into the, you know, nooks and crannies.

[Marc Benioff]

If you want, you can break it up like that and you have the software. Why would there be any other semiconductor companies?

[Jensen Huang]

Well, there's. There's lots. You know, Jim, the world of semiconductors is gigantic. We serve. We serve this one niche called accelerated computer and artificial intelligence. Now, this is a very important niche because it's the foundation of computing as we know it going forward. But Nvidia is a data center scale company. We're a full stack software company and we designed the entire computing system. We sell it in parts so that Everybody can enjoy Nvidia.

[Marc Benioff]

One last why do we why is Nvidia a $2 trillion company?

[Jensen Huang]

Oh gosh, that's a tough question. Well, first of all, there are several things that I really appreciate about the work that we do. One, the foundation the single most important instrument of humanity is computing. And now we have computers that could understand information of all different kinds. The impact to the industries are enormous. $100 trillion worth of industry are here. The impact of the work that we do to all these for all these industries is absolutely you can take your.

[Marc Benioff]

2% of the hundred trillion. Of course. 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 on man. Tonight we're hearing all about the secret to Nvidia success. Next, don't miss a second of Mad Money.

[Jim Cramer]

Follow Jim Kramer on X.

[Marc Benioff]

Have a question?

[Jim Cramer]

Tweet Kramer hashtag madmentions. Send Jim an email to mad money cnbc.com or give us a call at 1-800-743, CNBC. Miss something? Head to mad money.cnbc.com slowing growth, geopolitical uncertainty, Shareholder unrest In an increasingly complex world, today's business leaders must consider their strategy from every dimension. Creating long term value requires ambitious and achievable strategies enabled by the right experience, tools and capabilities to prepare for the journey ahead. Powered by 10,000 strategists, EY Parthenon works with you to see opportunities from every angle and execute on that vision. Learn [e-mail] you've almost certainly been prescribed a medication before, but did you understand how it worked? The way your medication works in your body shouldn't be a mystery. Learn how Vivgart, Hytrulo, Fgartigamod Alpha and Hyaluronidase QVFC works by visiting vivgart.commoa that's V Y vgart.commoa brought to you by Argenics when you're hiring, the best way to search for a candidate isn't to search at all. Don't search Match with Indeed Indeed is your matching and hiring platform with over 350 million global monthly visitors, according to Indeed Data and a matching engine that helps you find quality candidates fast. Use Indeed for scheduling, screening and messaging to connect with candidates faster. Plus, 93% of employers agree Indeed delivers the highest quality matches compared to other job sites, according to a recent Indeed survey. Leveraging over 140 million qualifications and preferences every day, Indeed's matching engine is constantly learning from your preferences. Join more than three and a half million businesses worldwide that use Indeed. Listeners of this show will get a $75 sponsored job credit. To get your jobs more visibility at indeed.com madmoney just go to indeed.com madmoney right now and support this show by saying you heard about Indee on this podcast. Indeed.com mad money terms and conditions apply. Need to hire you. Need Indeed.

[Marc Benioff]

Before we go into what is going on here, our viewers want to thank you. Thank you for allowing them to be able to retire on your stock, put their kids through school to change their lives, and I think it's good manners to say thank you.

[Jensen Huang]

Well, I want to say thank you to all of the shareholders. With their support, we were able to do our work and realize our hopes and dreams and make a real contribution to the industry and to the world. So I want to thank you.

[Marc Benioff]

Thank you. You're welcome. Okay. Because we have to start that way because what you've created here is something that is remarkable, that is being rewarded by the stock market. $2 trillion valuation. So I ask you, what has in video done to deserve such a valuation? And maybe it's still inexpensive.

[Jensen Huang]

There's probably never been a technology company that has made a greater technology contribution to one of the most important industries in the world, and that's such large scale. We reinvented the computer as we know it. The computer has been the same since 1964, since the year after I was born. And we reinvented it with this idea called accelerated computing. Now, you could have a computer that's 100 times faster or 20 times more energy efficient, cost 20 times less, and to be able to do solve problems at a scale that nobody's ever imagined such that we helped solve artificial intelligence. And we're now on our way to making enormous progress in automation of intelligence. And as you know, intelligence is foundational to every single industry. And that's the reason why they're all here.

[Marc Benioff]

Is this a factory of intelligence?

[Jensen Huang]

This in the future? This is exactly this right here that you're looking at. Can you guys see this? These servers are the densest computers in the world. This replaces entire data centers in the past and it shrinks them into this little tiny data center here. And this rack here would probably be more powerful than almost all of the computers in the world.

[Marc Benioff]

Two years. Will this be slow?

[Jensen Huang]

Every couple of years, we'll be coming up with something so, so much more incredible. In the last eight years, we improved performance per chip. Per chip, per one of these chips. We improved the performance of one of these chips by a thousand times in the last eight years.

[Marc Benioff]

So that means it can talk about a movie. What does it mean it can read Anna Karenina? What does it mean that it's so fast?

[Jensen Huang]

Well, first of all, it's probably read those things and probably read about the movies. And so if you wanted to ask it a question about those movies or a book, you say read this book. Now let me talk to you about the book. And you can, you can talk to it about. Just buy anything.

[Marc Benioff]

Now, can it. Can it make it so that a product like the Vision Pro becomes a commercial product where it would be great to be able to step into a car, make it, find out what it feels like, what it sees, and maybe that would be the sales element for a car company.

[Jensen Huang]

Well, first of all, I've enjoyed the Vision Pro, and I got to tell you, it's really fantastic. I really, really enjoy it. And they've done such a great job with it. The tracking with the world, the registration of all of the objects in the world. You feel like you're really, really in it. The thing that's really great is when we connect Vision Pro with this world we call Omniverse, and it's running on these computers, we essentially create this digital world that's overlaid with the physical world. And Apple calls it spatial computing. And you feel like you're practically there. It's really quite amazing.

[Marc Benioff]

At the same time, if we switch and we're Bristol Myers, we're Merck, one of these biotech companies, it costs a fortune to do a trial. And because it cost fortune to do a trial, they don't do trials or they try to solve the easy illnesses. I talked to Kimberly Powell, who's your vice president of health care, and it's very clear that beginning with Blackwell, we will not do trials the way we've done. And we will go after Parkinson's, we'll go after schizophrenia. The things that no one can conquer, they're now within your can with they're now possible.

[Jensen Huang]

We just as we use the technology, artificial intelligence, to understand a novel, we can use a similar technology to go understand the meaning of proteins, the meaning of life. Now, once we can understand the meaning of life and be able to operate, use it in a computer, we could use that computer to simulate life such that we don't have to do as much of the screening in a wet lab. We could do a lot of the screening in a computer. That computer does it so fast. We could explore the chemical space that is so much larger, explore the target protein space so much larger and so much more quickly. And so whatever we decide ultimately to take to trials, we'll have much higher possibility of actually passing the trial and becoming a. I think one of the.

[Marc Benioff]

Things in your keynote I would love urge people to watch, especially the soaring rockets at the end and how gorgeous they are. But people don't realize in the end you are a supplier to other companies. So that if I wanted to do the drug, I wouldn't call Jensen. I'd be working with a company that is figuring out how to be able to use you to be able to develop trial. You're not the nameplate. And that's one of the reasons why I think people can't understand that you're a $2 trillion company because they're not on the Nvidia phone.

[Jensen Huang]

You know, the. There's no computer company has ever been built like ours. We created a brand new way of doing computing. Everybody we work with, everybody we work with here, there's researchers and scientists from $100 trillion worth of industries, healthcare and financial services, manufacturing and such. And when we're done building all these computers, we break them up into parts and we integrate them into Microsoft Azure, oci, gcp, aws, HP and Dell and IBM, and they take it to market. And so the application software is being offered by Cadence and Synopsys and Ansys and Dassault. Really amazing company that we work with the SO and Autodesk and Adobe and others. The tech, our technology is integrated into theirs. Our technology is integrated into all these computer makers and the world connects it together. And that's the reason why Nvidia is everywhere.

[Marc Benioff]

Nvidia is everywhere. As Jensen said, Nvidia is quickly becoming the everything and everywhere company. And that's why the stock has the valuation that it does. It's why I say Owen at don't trade it. And it's why I'm a believer in Jensen and his vision. More with Nvidia CEO Jensen Wong after the break.

[Jim Cramer]

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[Jensen Huang]

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[Jim Cramer]

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[Jensen Huang]

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[Jim Cramer]

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[Jensen Huang]

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[Jim Cramer]

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[Marc Benioff]

Welcome back to this special Nvidia Centric edition of Money. As we mentioned before, invidious market cap has soared become part of an exclusive club where Apple and Microsoft hang out as a company. If it is different from the stocks I coined as fang a few years ago, Invaders consumer isn't you and me. It's the other companies that we buy from. Invidious partners like Amazon, hp, Metta rely on the chip makers innovation to power their own innovation. I asked Jensen about this concept of what happens when companies realize they need Nvidia, what I call getting it right.

[Jensen Huang]

With Jensen, our technology is integrated into all these computer makers and the world connects it together. And that's the reason why Nvidia is everywhere. We're in every cloud, every, every data.

[Marc Benioff]

Center is that we hear all the time. Well, you know, but Amazon's working on a competitive product Alphabet. All I hear from you is good, but we want to help everybody develop whatever's necessary. You are not at war with customers?

[Jensen Huang]

No. Well, we do something very different. First of all, our architecture on the one hand could do artificial intelligence. It could do computer graphics, physics simulation, data processing, processing, sequel data processing which consumes a lot of energy, a lot of cost for many customers. We reduce it by 95%, 20 times reduction in cost and energy used. So much so that Google's data proc is now accelerated by it. We announced a partnership yesterday with a great company, Databricks. They're going to accelerate their data process. They're the large scale data processing cloud company. They're going to accelerate their data processing on it. And so all of this is something you can do on our architecture. The other thing you can do with our architecture is everywhere. And so if you're a developer and you develop on Nvidia, you can run it on aws, gcp, Azure, hp, Dell, IBM, anywhere.

[Marc Benioff]

But how is it. But you can't. Everything's on allocation you say we can do that, but nobody has enough Nvidia product. Correct. I just. Does Mark Zuckerberg have enough in video with 350,000 chips?

[Jensen Huang]

Well, it's going to be, it's, we're in the beginning of this AI computing ramp and we're in the, in the beginning of the accelerated computing ramp. Well, how it's going to, it's going to last, it's going to last a few years.

[Marc Benioff]

Going to be able to get. Then we, we know that you are tech power. I'm looking at tech power. I can't get enough tech power. So what do I do? How do I get right with Jensen?

[Jensen Huang]

Everybody is right with me. They're fine. So, so the most important thing is, is to work together to plan for the delivery of the chips. You got to place the po. Get your data center ready, get all the engineers working on, on these data centers together. We'll make sure that everybody gets their.

[Marc Benioff]

Part and they're all going to be presumably customers for life. You, you can't just switch if you're, it's, if it were just chips, if we're just hardware, then you could be a commodity. You're not commoditized. You're going the other way.

[Jensen Huang]

And videos computing platform. Yeah. So the applications that are developed for our hardware runs on our hardware.

[Marc Benioff]

Well, we're going to have to take a break and when we come back, we're going to find out more about this man who is sitting opposite me. Because it's amazing. From brainstorming on a napkin to owning and managing a 3 trillion dollar company, Jensen Wong has become a real legend in the industry. Now there's much more. Mad Money with Nvidia CEO Jensen Huang coming up. Welcome back to Mad money with Nvidia CEO Jensen Huang. Jensen, 8 billion people did not get a degree in computer science. What are you doing to democratize this world?

[Jensen Huang]

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.

[Marc Benioff]

But we say, please help me build a factory that can make the best cars.

[Jensen Huang]

It can do that. It surely will help a lot. And the reason for that is because you give it a plan, you tell it what are the type of parts that you like to put into it. Eventually this factory will be a robot that's orchestrating a bunch of manufacturing robots that are building cars that are going to be robotic.

[Marc Benioff]

And why do robots look like people?

[Jensen Huang]

Well, robots look like people because a couple of reasons. First reason, the most important reason is that we built the world for ourselves. And so the workstations of a factory, the manufacturing line of a factory was really critical, created for people. And that's the most important reason. The second most important reason is that we have to teach a robot how to be a productive robot. And you need data for that. We're in a world where in order to write a software for a computer, we use data or training examples and the computer learns from the examples. Well, we have the most examples of human moving around, of just about any other form of data.

[Marc Benioff]

When you thought of this, were you at, were you at Denny's sitting around with some people and saying, you know what, we can do this. It may take 20 years, 30 years, but we're going to do this. When did you think of this?

[Jensen Huang]

Well, we started the company in 1993 and our big idea was acceleration, accelerating the work that CPUs are not good at. And if we, if we take that work that the CPU is not good at and we offload it to something that is incredibly good at it, we can make the overall computer more efficient. That was the big idea.

[Marc Benioff]

But that was for Game.

[Jensen Huang]

Well, Game was the first application.

[Marc Benioff]

Okay, okay.

[Jensen Huang]

Game was just the first application.

[Marc Benioff]

That's a mistake. A lot of just say you were a gamer. No, you had.

[Jensen Huang]

We were so good at making that chip for games that people thought we were a game company.

[Marc Benioff]

Intel thought you were a game company. I know that you presented there.

[Jensen Huang]

We're happy that anybody thinks of us at all. And we were so good at it. And in fact, Nvidia is the world's best game technology chip company today. I'm so proud of the work that we do there. And as you know, games, kind of a simulation of the virtual world.

[Marc Benioff]

And so because of this, because of the whole from Denny's all the way, somehow you are still the underdog. You that you are hungry. You make it feel like your company's gonna go out of business in 30 days.

[Jensen Huang]

You know, Jim, that's probably something just related to upbringing. You know, I, you know, we grew up, we grew up working hard. My parents worked hard. We're immigrants.

[Marc Benioff]

You arrived here before then when you were 9?

[Jensen Huang]

Yeah, yeah. And so my older brother brought me to United states. He was 10. And so we had a 10 year old bring a 9 year old to the United States. And so we had quite a great life, you know, but we had to work for it. And we were immigrants and we took nothing for granted. And my parents work Incredibly hard. They work incredibly hard today. And so I think that that part of my DNA.

[Marc Benioff]

Are they hard workers?

[Jensen Huang]

Well, they work super hard.

[Marc Benioff]

And what divisions are they in?

[Jensen Huang]

I have two kids, they both work at Nvidia. Took me a decade to convince them to come work here. They, you know, they wanted, they wanted to go do their own thing.

[Marc Benioff]

They want to be a chef.

[Jensen Huang]

One wanted to be a world class chef and one wanted to be in marketing and an artist. And so but now both of them are here. One's a marketing and one's an engineer. And so it's really terrific.

[Marc Benioff]

They can engineer the best cake ever.

[Jensen Huang]

Spencer is in, Spencer is in robotics and Madison is in Omniverse. And so they're doing amazing work.

[Marc Benioff]

Okay, so are your Blackwell. Is the, Are these the most expensive, expensive things on earth?

[Jensen Huang]

Well, this, this, this chip is the heart of the Blackwell system.

[Marc Benioff]

Okay.

[Jensen Huang]

And this is the largest chip the world's ever made. This is made at TSMC. TSMC's 4 nanometer process. And it is so large, we have to take two of the largest chips in the world and connect them together into one giant chip. And so that's the Blackwell chip. That chip goes into the Blackwell computer. And this computer, the R and D budget is about $10 billion. It took us, you know, about three years or so to make. And what goes into this is supported by a whole bunch of unbelievable networking and high speed IO and mountains of software. And it goes into a data center. And this data center becomes an artificial intelligence factory. And it produces artificial intelligence.

[Marc Benioff]

Well, can we safely say that if we wanted to have, let's say, a thousand incredibly smart people at our company, that they would not be collectively even as smart as that?

[Jensen Huang]

Well, it depends on the type of smartness. Yeah. You know, artificial intelligence is good at emulating, emulating us. And so it emulated how we read and it emulates. In order to emulate how we read and finish sentences and summarize paragraphs, it had to understand what it read. And so in order to emulate us, it had to understand words.

[Marc Benioff]

Okay, so I visit you six years ago, five years ago. It's obvious to me when you show me the dog picking up the jello and then you reward the dog, that this is. I'm seeing something spread special. I'm painting a Cezanne seascape. It was so obvious. But it took ChatGPT for everybody to know.

[Jensen Huang]

Well, ChatGPT is quite an amazing breakthrough. You know, the OpenAI engineers and scientists.

[Marc Benioff]

But it's based on this.

[Jensen Huang]

I'm Very proud that Nvidia's computers made it possible for chatgpt possible. But their researchers did just unbelievable work.

[Marc Benioff]

There you have it from Jensen himself. Nvidia's computers made ChatGPT possible. This is why I say own it, don't trade it and why I've been pounding the table on this company ever since I saw its AI create a painting at my request. They look like it was done by Cezanne. Nvidia's creativity, its computing power and its innovation. More with Jensen Huang after the break. Welcome back to Mad Money. More with Nvidia CEO Jensen Huang. Now, one of the things that does concern me is we're not perfect yet. I went to Microsoft's copilot and I asked who your best partner is and it said your best partners Intel. I don't think that's true.

[Jensen Huang]

Intel's a great partner. Intel's a great partner. Mike was saying, who isn't a great partner?

[Marc Benioff]

Well, we have to convince.

[Jensen Huang]

We work with just about everybody, you know, and video. Here, here's, here's what Nvidia is a market maker, not share taker.

[Marc Benioff]

Okay?

[Jensen Huang]

We create markets. Everything that we do didn't exist before.

[Marc Benioff]

But then why are people, some people so scared, so scared of AI, so have public fear that this is going to make them. So they don't have a job. This is going to create jobs.

[Jensen Huang]

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.

[Marc Benioff]

Well, that's, that's called an industrial revolution.

[Jensen Huang]

That's right.

[Marc Benioff]

That's what the loom was.

[Jensen Huang]

That's what the steam engine made companies more productive, created more jobs and made the economy larger.

[Marc Benioff]

Is there a CPU that it's that that should withstand it or wouldn't we want everything, don't we want this in our PC? I know we don't have it yet, but don't we want this ourselves in a consumer, consumer fashion, not just business to business?

[Jensen Huang]

Absolutely. Absolutely. Every device will have, will run artificial intelligence software. The question is, are they small software or larger software or gigantic, gigantic artificial intelligence?

[Marc Benioff]

I listen to you and I wonder, won't there be an arms race? We're not friendly with every country in the world. Won't other countries say, you know what, we have to create our own Blackwell and compete or else we left behind because we shouldn't necessarily share what we have as a country.

[Jensen Huang]

The most important thing that countries have to do is to create their own intelligence. There's sovereign AI. They have to do their own sovereign AI. And the reason for that is very simple. They have a lot of data that belongs to their country. It's their natural resource. It's of their people, of their language, of their culture.

[Marc Benioff]

Should be wanting China to do this.

[Jensen Huang]

China, China is going to do their own anyways. But every single country should harvest, should process the data of their culture and turn it into intelligence that their own society can use. Sweden's already doing this. India is working on doing this. Japan is working on doing this. I think every country should do their own and make sure that they own their own intelligence.

[Marc Benioff]

So that's no hegemony of the United States and would be terrible.

[Jensen Huang]

And, but most importantly, it's because the data belongs to the people. It's their national assets, their national resources. It could be. It could, of course, be combined and shared with everybody else, but we're happy to provide the hardware that helps everybody do that. But it's really important that all of the countries create their own sovereign AI.

[Marc Benioff]

Okay, I want to talk about the things that seem superfluous or frivolous, but work, entertainment, the way we sing, the language that we do it. People don't realize the music that it can write. How does it have so much creativity?

[Jensen Huang]

It understands music the way it understands language. And you know, today when you ask ChatGPT a question, it answers. It answers your question based on the context of the conversation. Well, you could have a context of the music. And the computer doesn't know the difference between letters, words, and sentences. It doesn't know it any more than it knows, you know, sounds and bars. And so it could create music in the same way that it creates language.

[Marc Benioff]

The same way it creates a better operating room, the same way it creates a better operation or a better machine to operate.

[Jensen Huang]

That's right.

[Marc Benioff]

These are all. All things that better.

[Jensen Huang]

Better chemicals for drugs, druggable chemicals, better proteins for enzymes, for, you know, antibiotics.

[Marc Benioff]

Well, then let's bring it back to Wall Street. Wall street is trying to say, trying to pigeonhole, and the truth is, is that your earnings have always exceeded, even if you go back to 2016, like your stock was expensive to be cheap. How do we try to value what you talk about? Because I myself, who think that I'm a dollar sign represented by a man, and I accept that. I find it. That was supposed to be funny, like.

[Jensen Huang]

Your speech, and it's super funny.

[Marc Benioff]

Thank you. There. I was super fun. I was super.

[Jensen Huang]

I was laughing inside.

[Marc Benioff]

Okay, okay, That's Good.

[Jensen Huang]

But you understand, on the outside I was just listening.

[Marc Benioff]

True.

[Jensen Huang]

Yeah, true.

[Marc Benioff]

Inside, Minnie Jensen was laughing.

[Jensen Huang]

Inside, I was so busted up.

[Marc Benioff]

I'm just trying to, like, I don't know whether it's 10 trillion. It's. Maybe it should be a $10 trillion company because you're describing everything, you're describing everything that moves, everything that's digitized could be better. So if that's something that you can do with software and hardware, well, that's not a 2 trillion dollar product.

[Jensen Huang]

The opportunity for our company and the impact of our company has everything to do with the size of the industries that we serve. There's never been a computing company that has directly impacted so many large industries before. Artificial intelligence is not a generic thing. Artificial intelligence is an intelligence that is related to a particular domain. And so the artificial intelligence of information is one for healthcare is another for transportation, transportation is another for manufacturing, for industrials. For each one of these industries, the technology that's associated with making the impact for that industry is different. And so our opportunity is very, very large.

[Marc Benioff]

Okay, so you can't, look, you can't meet the demand by any means. And I think there's still this misunderstanding that, well, there'll be a transition between the H100 and Blackwell. All that stuff seems like it's nonsense to me. It's a continuum and people would even. There are a lot of people who would just die for. They've never seen an H100. It's not outmoded. It works.

[Jensen Huang]

Yeah.

[Marc Benioff]

And it creates. It could create a giant liquid liquefied natural gas boat.

[Jensen Huang]

The demand is so high, every customer wants to have their hopper right now. And they're more than happy.

[Marc Benioff]

Andy Jassy, if I called him, I said, listen, I think I can get you another 100,000. Is. Would he be happy?

[Jensen Huang]

He would be delighted.

[Marc Benioff]

He was delighted.

[Jensen Huang]

Yeah. Because they want Zuckerberg.

[Marc Benioff]

Because they want a million more.

[Jensen Huang]

Yes, because they want to build their business. They want to run their business today, not wait nine months from now to run their business. They want to run it today. And so, so our, our chips are not a consumer product. You can wait next week for a year from now to buy. It's an operational part of your company and you want to run your company today. And so hoppers will be in great demand and great, you know, great, great supply coming, but great demand for some time.

[Marc Benioff]

I thought that at the conference, one of the amazing things is there are many companies that have nothing to do with technology. I said, John Deere. They make Tractors, they need you.

[Jensen Huang]

I love the fact that John Deere is here. They make robotic tractors, make farming more efficient so that the farmers could be more prosperous. More prosperous. And so all of this, you have, you have retails, you have consumers. It's incredible. Industrials, well, if you're some of the.

[Marc Benioff]

World'S largest retailer and you don't use.

[Jensen Huang]

You, Rockwell Automation is here. In fact, one of my favorite things was a demo I couldn't do because we ran out of time. But Microsoft, Rockwell Automation, Hexagon did a digital factory completely in simulation and it was just fantastic. Industrial digital twin. It was, it was a fantastic demonstration. I hope that we'll put it online. But Microsoft, Rockwell and Hexcon did a great job.

[Marc Benioff]

This is what makes Nvidia so different from the rest of the pack. The demand environment is unique. It's not just you and me asking for a new iPhone, a new car, even faster deliveries piece. It's Amazon, Meta Pfizer, Tesla asking for Jensen's latest innovations right now. More with Jensen Huang after the break. Jensen Wong co founded Nvidia in 1993. He's been the president and CEO of this company ever since. But the Jensen before Nvidia is just as interesting as the Jensen after. We got to talk a little bit about his personal life and how his upbringing brought him to where he is today. Now, I want to go back to your upbringing. I know you went to a special school in Kentucky that turned out to be special in a different way. I know that you were the little guy with the, with the glasses and you got beat up a lot. But I also know that everybody in the end seemed to like you and you still maintain friends and you put a school up there. Who were you?

[Jensen Huang]

I went to a school and the mission of the school is to welcome anybody who needs to come. And so there are some kids there that needed to go for behavioral reasons, some because they had broken homes, in our case because we were immigrants. And it was a school that was willing to take us. So the openness of the school, the accessibility of that school changed our lives. And it was, it was very important to us. I'm very grateful to the school. Anita Baptist Institute. Yeah, it's a tough school with a bunch of tough kids because some of the kids had to be there.

[Marc Benioff]

And so they won them over.

[Jensen Huang]

Yeah, they're all, they're all, they're good friends now. Yeah.

[Marc Benioff]

Now the last thing I have to ask you is there are two kinds of stacks. You talk about this kind of stack, and it's obviously worth billions. And then there's the stack that you used to serve at Denny's, which of course is the full stack.

[Jensen Huang]

My first company.

[Marc Benioff]

Right. So which is more fun?

[Jensen Huang]

No. Well, it just depends on the time of day. You know, I, first of all, the, the, I loved my job at Denny's. You and, you and I were both in the restaurant business.

[Marc Benioff]

Boy, I didn't want to be a dishwasher.

[Jensen Huang]

I washed a lot of dishes. I was very good at it.

[Marc Benioff]

Good job.

[Jensen Huang]

Yeah. It was a tougher job. Yeah. And, and, and then I was a busboy and, and the waiters and all the customers took great care of it.

[Marc Benioff]

But you liked that too?

[Jensen Huang]

I loved it, yeah.

[Marc Benioff]

You have a lot of joy in your life.

[Jensen Huang]

I do, I do.

[Marc Benioff]

That's wonderful.

[Jensen Huang]

I can't imagine a more perfect life.

[Marc Benioff]

Okay, so what world issue are you most want to save? Earth 2, perhaps?

[Jensen Huang]

Well, artificial intelligence has its two greatest opportunities. I would say most greatest opportunities. The hardest one is to learn the language of life and that's healthcare. That is, if we could solve that in this generation, the impact to society be enormous. The other is to understand physics, understand science, multi physics, very large scale physics, all the way down to small scale physics so that we could predict the climate. The ability for us to understand these two things are so, so profound to society and we're so excited about it. And that's the reason why Nvidia has healthcare. Nvidia's working on Earth 2 so that we could help contribute to the industry and all the other scientists that are working on this. From our perspective of understanding how computers work and our perspective and our scale of computing, we might be able to make a contribution these two areas.

[Marc Benioff]

Super excited about it. 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]

I'm grateful for all of your support. Thank you.

[Marc Benioff]

That was Jensen Huang, the co founder, president and CEO of Nvidia from the company's developers conference in March. I like to say there's always a bull market somewhere. I promise you I'd find it just for you right here on Mad Money. I'm Jim Cramer. See you next time.

[Jim Cramer]

All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBCUniversal or their parent company or affiliates and may have been previously disseminated by Kramer on television, radio, Internet or another medium. You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer who do you see when you look in the mirror? Someone who wants to make change in their community. Who do you see when you look in the mirror? Someone who's striving for more. Who do you see when you look in the mirror? Someone who is just getting started. You have the power to create the change you want to see. With Walden University, it's time to Join more than 174,000 alumni making change happen. Walden University Set a course for change. Visit waldenu. Edu.