Companies are investing in a so-called metaverse because it could ultimately save them from significant real-world changes, Nvidia CEO Jen-Hsun Huang told CNBC’s Jim Kramer on Friday.
In an interview on Mad Money, Huang described a vision of interconnected virtual reality universes that go beyond facilitating leisure and commerce. Rather, Huang said he believed companies could rely on the metaverse – or universe, which is Nvidia’s preferred term – to reduce wastefulness and improve operational efficiency.
“We spend a ton of stuff to compensate for the fact that we don’t model. We want to simulate all factories in the metauniverses, in this universe. We want to simulate plants in the universe. We want to model the world’s electrical grids into the universe, ”Huang said.
“By doing this, we could have reduced waste, which is the reason the economy is so good for companies,” he continued. “They are willing to invest a small amount of money to buy this AI capability, but they will hopefully save hundreds, hundreds and hundreds of billions of dollars.”
Nvidia, a California-based company, is the world’s largest manufacturer of graphics and artificial intelligence chips. While demand for its semiconductors has already grown, the increased attention and investment focused on the metaverse is a boon for Nvidia. That’s because the company’s chips play a critical role in the computing devices that will power the metaverse.
The concept of the metaverse has been around for decades in sci-fi circles, but Wall Street is now taking notice that a number of tech giants, such as Facebook’s parent company, Meta, are mobilizing resources to create interactive, immersive virtual worlds.
Huang’s appearance in Mad Money comes two days after Nvidia reported higher-than-expected revenues and earnings for the third quarter. Nvidia shares have plummeted in recent weeks, at least in part due to investor optimism about the metaverse. Shares are up 29% this month and 66.6% over the past three months.
Nvidia’s market cap is now $ 824.6 billion, making it the seventh-most valuable company in the S&P 500.
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