The US chip-maker Nvidia, despite being a major player in the cryptocurrency sector, has stated that cryptocurrencies do not bring any useful value to society. Instead, the company believes that other applications of processing power, such as artificial intelligence chatbots like ChatGPT, are more worthwhile. Nvidia has even taken steps to limit the use of its graphics cards for mining purposes, prioritizing supply for AI researchers and gamers. The company’s chief technology officer, Michael Kagan, argues that mining cryptocurrencies has limited value compared to the potential of AI. Nvidia’s products, originally designed for PC gamers, have unexpectedly become integral to the AI industry, with major companies like Microsoft and Amazon purchasing their AI-focused processors. Despite their success in these fields, Nvidia remains skeptical about the positive impact of cryptocurrencies on humanity.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Nvidia claims cryptocurrencies are not useful | Shift from crypto mining to AI | Increased use of AI applications | Limited value of mining cryptocurrencies |
| Nvidia restricts graphics cards for crypto mining | Focus on preferred customers | Increased supply for AI researchers and gamers | Prioritizing preferred customers over crypto miners |
| Nvidia’s processors used in AI training | Adoption of Nvidia products in AI | Widespread use in AI industry | Compatibility with AI training needs |
| Microsoft and Amazon purchase Nvidia processors | Increased demand for Nvidia’s AI chips | Expansion of AI technology | Need for powerful processors for AI workloads |
| Nvidia’s CEO describes the company as an AI engine | Influence of Nvidia in AI industry | Pervasive AI technology | Belief in the transformative power of AI |
| Nvidia’s failed acquisition of Arm | Regulatory difficulties hinder takeover | Uncertain future for the merger | Regulatory challenges affecting business strategies |