Nvidia CEO Unveils 'Jensen's Law' for AI Factories, Driving Performance and Cost Efficiency
Summary
Nvidia CEO Jensen Huang unveils 'Jensen's Law' for AI factories, driving performance and cost efficiency; when power is constrained and demand elastic, increases in performance per watt raise monetizable throughput faster than total cost, leading to higher revenue or lower unit costs.
Key Points
- Nvidia's CEO Jensen Huang has invoked a new economic law for AI factories called Jensen's Law, which states that when power is the constraint and demand is elastic, increases in performance per watt raise monetizable throughput faster than total cost.
- This law leads to two outcomes: 'buy more, make more' where revenue increases, and 'buy more, save more' where unit costs decrease.
- Under certain conditions, fabric-driven utilization unlocks are so valuable that high-speed networking becomes 'economically free', where utilization gains exceed amortized fabric cost.