BG2 releases a long interview with Jensen Huang on whether AI revenue justifies capex, 2027 bottlenecks and open versus closed models
BG2 w/ @JensenHuang. Does AI Revenue Justify Capex, ‘27 AI Bottlenecks, Singularity, Open vs Closed & more. 🚀🇺🇸 @altcap @_clarktang @nvidia
Context
Nvidia's CEO is the most closely watched voice on whether the AI spending boom is sustainable, and this interview is the source of several clips circulating today.
This is a first hand post from the BG2 podcast hosted by Brad Gerstner of Altimeter, who is an Nvidia investor, so the conversation is friendly rather than adversarial. The post lists topics but not Huang's answers.
Deep dive
On October 15, the BG2 podcast posted a new episode with Nvidia CEO Jensen Huang. The post listed the topics as whether AI revenue justifies capex, AI bottlenecks in 2027, the singularity, and open versus closed models, and tagged hosts Brad Gerstner and Clark Tang along with Nvidia. The video runs about an hour and forty minutes.
Clips from the interview spread quickly. In one, shared by the account Fireside Alpha, Huang says he loves working with Elon Musk, describes Musk as both using Nvidia technology for his own AI and renting it out, and says one new market the two will explore is putting data centers in space, with their engineering teams designing a new type of server that could work in space and on Earth. Musk quoted that clip later in the day to say the Star Mind computer the companies are building will reach volume production next year.
The post itself does not summarize Huang's views on capex or bottlenecks, so those answers have to be checked in the full video.
A later clip from the show's own clips account says Musk wants 10 gigawatts of compute by the end of 2027, and quotes Huang saying Nvidia used to report Musk's companies under enterprise but now counts them among its cloud service providers. Musk quoted that clip in the evening with: Maybe more than 10GW.
What to expect next
Watch which of Huang's answers on capex returns and 2027 bottlenecks get picked up by investors, since they bear directly on spending plans at the big cloud companies.
Also watch for more clips from the episode and for any follow up from Nvidia next week, when Huang is expected in Europe for new investment announcements. His comments on open models may also be read against Nvidia's own Nemotron release today.