Nvidia plans trillion-dollar AI-powered data centers
Nvidia has big plans for the future, aiming to create massive data centers that will power artificial intelligence. At the Nvidia GTC 2025 event, CEO Jensen Huang spoke about building what he calls "AI factories." These facilities would generate revenue using tokens and could potentially cost $1 trillion to establish. The construction of data centers is expensive and growing more complex. Nvidia is involved in a major project called Stargate, with a $500 billion budget. Apple is also investing $500 billion in data centers. Analysts predict that global spending on data centers could reach $1 trillion by 2027 or 2029. One of the key innovations presented is Nvidia's Photonics switch systems. These designs will enable AI factories to support millions of GPUs, enhancing their computing power. The presentation also highlighted how AI could transform industries worth $50 trillion, involving billions of cameras, factories, vehicles, and even humanoid robots. Nvidia envisions a future with many humanoid robots, which will learn new skills in real-time using a system they call "Three Computers." This includes methods for pre-training, simulation, and runtime operations. A promising new model, named GR00T N1, was developed with partners like Google Deepmind and Disney Research. Nvidia's vision points toward a world where AI becomes essential for everyday life. The technology aims to integrate into our existence, making AI a key part of what it means to be human. The presentation did not mention the concept of AGI, or artificial general intelligence, at all.