Nvidia CEO says the meta-verse can save companies billions

Companies are investing money in the creation of the so-called metaverse because it could ultimately save them significant chunks of real-world change, Nvidia CEO Jensen Huang told CNBC’s Jim Cramer on Friday.

In an interview on “Mad Money,” Huang painted a vision of connected, virtual reality universes that go beyond facilitating recreation and commerce. Huang rather said that he believes companies can lean on the meta-verse – or the omniverse, which is Nvidia’s preferred term – to reduce waste and increase operational efficiency.

“We waste a whole lot of things to overcompensate for the fact that we do not simulate. We want to simulate all factories in metavers, in this omniverse. We want to simulate plants in omniverse. We want to simulate the world’s electricity grid in the omniverse,” Huang said. .

“By doing that, we could reduce the amount of waste, and that’s why the economy is so good for businesses,” he continued. “They are willing to invest a small amount of money to buy into this artificial intelligence capacity, but what they are saving is hopefully hundreds and hundreds and hundreds of billions of dollars.”

California-based Nvidia is the largest maker of graphics and artificial intelligence chips in the world. While the demand for its semiconductors was already growing, increased attention and investment focused on the metaverse is a boon for Nvidia. This is because the company’s chips play a crucial role in the computing devices that must run the metaverse.

The concept of the meta-verse has been around for decades in science-fiction circles, but Wall Street now notes that a number of technology giants like Facebook parent Meta are pooling resources toward creating interactive, immersive virtual worlds.

Huang’s appearance on “Mad Money” comes two days after Nvidia reported better-than-expected third-quarter earnings and revenue. Nvidia shares have been at a rapid level in recent weeks, at least in part driven by investor optimism on the meta-verse. The stock has risen 29% so far this month and 66.6% over the past three months.

Nvidia’s market value is now $ 824.6 billion, making it the seventh most valuable company in the S&P 500.

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