Nvidia's Huang Renxun: The Metaverse is virtual, but making money is real

Last Friday, Nvidia CEO Jensen Huang said in an interview with CNBC's financial program "Mad Money" that the reason why major companies are flocking to the metaverse is because it can ultimately reduce cost waste in the real world.

The interconnected virtual reality world described by Huang Renxun can not only promote progress in the fields of entertainment and business, but also have more practical functions. For example, enterprises can rely on the metaverse to reduce cost waste and improve operational efficiency.

Huang Renxun positioned "Omniverse" as the metaverse for engineers, and through NVIDIA's CPU, CUDA, ray tracing and other software and hardware technologies, he can truly implement the metaverse in industrial scenarios.

Simulation reduces cost waste

In the interview, Huang Renxun said:
We wasted so much time making up for the fact that we couldn't simulate. What Nvidia wants to do is simulate all the factories in the metaverse. In Omniverse, we can simulate plants, we can simulate power grids, we can simulate a lot.

Huang added that simulation can reduce a lot of real-world cost waste, which is why the economics are in the company's favor. Factories want to invest a small amount of money to buy such intelligent systems, and they can save tens of billions of dollars through simulation.

NVIDIA is the world's largest AI chip manufacturer. By creating the "three-core" strategy of "GPU+CPU+DPU" and building the underlying technology of the metaverse, it has further improved its own competitiveness.

BMW is coordinating production at 31 factories around the world by promoting the use of the Omniverse platform. Omniverse and NVIDIA AI can simulate BMW's production network and all elements of the entire factory model , such as workers, robots, and virtual factory planning, predictive maintenance, and assembly parts, which is expected to increase BMW's production planning efficiency by 30%.

Many technology giants such as Meta are also promoting the creation of the Metaverse, and its popular VR helmet has sold 10 million units. Although the Metaverse is virtual, it is obvious that there are economic benefits associated with it.

Omniverse, a billion-dollar growth engine

The release of the Omniverse platform has laid the foundation for the technology of the Metaverse industry. Aaron Rakers, an analyst at Wells Fargo, said that in the next five years, the Metaverse will provide Nvidia with a market value-added opportunity of $10 billion. The engine that can bring tens of billions of dollars of growth is Omniverse.

Earlier, Nvidia released its third-quarter earnings report, with revenue and gross margin exceeding expectations. Nvidia's stock price has been falling in recent weeks. Since the release of the Omniverse platform in early November, investors have been very enthusiastic about it. Nvidia's stock price has risen 29% this month and 66.6% in the past three months.

Nvidia's market value is currently $824.6 billion, surpassing Berkshire Hathaway and ranking seventh in the United States.