Nvidia's Jensen Huang wants to build AI factories in weeks, not months

DGX pod, an AI factory in a shipping container. Is that a fair sort of representation of it?

You know, it's it's fascinating because it gets at the supply chain, but it also gets at this financing question that's been sort of rattling the AI trade over the last few weeks, especially the neo clouds. So, if you can give lenders essentially more certainty about what a data center costs and when it starts earning money, when it comes online,

Mhm.

Do you think that makes it easier to finance?

This is going to make it way easier. Let me tell you why. So, a gigawatt of data center is like $50 billion. And that $50 billion from the moment that we ship the technology components, it goes through an OEM, those computer computers land at a data center, from that point to operationalizing could be four to six months.

And during that four to six months, you're wiring these computers up, you're getting them all booted, and and so what if we were to do some of the manufacturing of that in the supply chain.

The advantage is that you might be able to shorten that four to six months to maybe three to four months or take three to four months out of it. And uh as a result of that, your time to revenues is going to be accelerated, but also that idle cash, because you had to pay for it, that idle cash would be reduced.

Right. So it's sort of narrowing the cone of uncertainty, right? And that has been the major concern. Right now markets, um, are sort of they're volatile, we'll say, worried about neo clouds, then optimistic. Um what do you think the chances of a shakeout, any kind of shakeout are?

I think this is going to get solved and the reason for that is because the demand is so good. You know, just last night, SpaceX just announced and I think Elon uh said that demand is many times the capacity he has. and he has a lot of capacity and so he's building more because the amount of demand is just incredible.

Core Weave is kind of the same way. Uh Nebius is the same way, N scale is the same way. I think the challenge of course is that um and this is kind of what you were trying to get at, from the moment that the computers are shipped to the moment that they start earning um could be many months. And the amount of float because we're talking about a fair fairly significant uh investment, the amount of float is quite large.

And so, we need to help, we need to help these companies uh reduce that and I think that's the ex reducing the supply chain, making it easier for them to stand up these the the computing is going to make a big difference.