Nvidia's $567 Million 'Side Hustle' That CEO Claims Is Worth Trillions
The world's most valuable company is looking for "AI muscle."
TLDR;
Nvidia made $44 billion last quarter and calls robotics their "biggest opportunity."
Robotics brought in $567 million. That's 1.3% of their revenue.
Jensen Huang says it's a "multitrillion-dollar opportunity."
The numbers don't lie (but they’re not everything..)
It’s far from… Like, really far from.
Jensen Huang, Nvidia’s CEO just told investors that robotics is Nvidia's "biggest opportunity after AI."
His robotics division made $567 million last quarter.
His data center business made $39.1 billion. Same quarter.
You do the math. That's 1.3% of their revenue.
They do this alot — talk about something being the future, and ending up being a BlackBerry.
But here's the thing
I've been watching Figure.ai's robots work. These aren't the clunky, falling-over robots we're used to.
These things move like humans. They learn. They actually work.
But then you think about it.. Look at it sort some packages…
Why Jensen might not be completely wrong
"We stopped thinking of ourselves as a chip company long ago," Huang said.
When the CEO of a $3.8 trillion chip company says he's not a chip company, you roll your eyes.
But then you think about it…
Why he might be right
Right now, ChatGPT lives in the cloud. It can write your emails but can't make your coffee.
Physical AI changes everything. Every robot needs chips to think. Every self-driving car needs processing power. Every smart factory needs Nvidia's entire setup.
When Figure.ai's robots get smarter, they buy more Nvidia gear. It's not selling chips once. It's infrastructure for life. It’s the fuel for cars when they were still being invented (we all know how that turned out to be.)
The physical AI jump
The difference between digital AI and physical AI is huge – ChatGPT tells you how to make a sandwich. A robot makes the sandwich. That's the jump from 0 to 100.
Huang says they'll hit $5 billion in robotics revenue by 2026. That's 10x growth. Still sounds tiny next to their $39 billion data center empire.
Here's what he sees:
Billions of robots, each one a customer forever.
Not just chips. Cloud computing, updates, infrastructure.
It's not about replacing their data center business. It's about multiplying it.
The imagined future
Let's be honest. Huang is betting the world's most valuable company on 1.3% of their revenue. They can afford to do this.
Apple retained the badge of the most valuable company by, well, making iPhones (the same ones over and over again.)
But they actually maintained it because they had the “Apple loyal customer”
Nvidia is going for that robot that will become “Nvidia’s loyal customer”
It’s not so far fetched…