‘We’re lovers, not fighters’ — Nvidia CEO Huang dishes on 4 key partners
Nvidia CEO Jensen Huang joined CNBC’s Jim Cramer for a special Investing Club interview on Tuesday at the New York Stock Exchange. With dozens of Club members in attendance for our October Monthly Meeting, Jensen answered questions about Nvidia’s most important partnerships, including Oracle , Intel , CoreWeave , and OpenAI. Here is a rapid-fire look at his responses: Oracle Addressing a report in The Information that Oracle is seeing thin cloud margins from Nvidia chips, Jensen acknowledged that a company ramping up a technology might not make as much money as first expected. He said, “What Oracle does with our systems is not easy. We’re talking about supercomputers. Over the life of the systems, Oracle is going to be wonderfully profitable,” Jensen said. Shares of Oracle dropped roughly 5% early Tuesday on that report, but have pared some of those losses this afternoon. Intel Intel spent more than 30 years of “our lives trying to kill us,” Jensen said, basically outlining the time from Nvidia’s start in 1993 to the September deal the two companies made to work together. As Jim said at the time, Nvidia was throwing Intel a lifeline. Jensen told Jim on Tuesday that he likes to imagine a future where many companies can win, not just Nvidia. “When we give a keynote, everybody’s stock goes up. When everybody else gives a keynote, our stock price goes down,” Jensen said. Part of the Intel agreement has Nvidia buying $5 billion in Intel common stock. “We’re lovers, not fighters,” Jensen said. “Now, I’m an Intel shareholder.” Coreweave “The reason we invest is we imagine building something together,” Jensen said. “When we wanted to build a different type of cloud, we invested in a small company called Coreweave.” Fast forward to March of this year, Coreweave went public, and Jensen said, “We made a fortune.” Coreweave, which rents the use of Nvidia chips to provide computing power to companies building and developing their own AI, priced its initial public offering at $40. The stock now trades around $130 per share. OpenAI “We are going to invest in OpenAI,” Jensen said. “The partnership with OpenAI is really incremental to all the work that we have done with Azure, OCI, and Coreweave.” Azure is the cloud unit of the Club name Microsoft , and OCI stands for Oracle Cloud Infrastructure. OpenAI will buy directly from Nvidia. Normally, cloud providers buy from Nvidia and rent to companies. Last month, Nvidia announced its agreement to invest $100 billion to help OpenAI build out 10 gigawatts of artificial intelligence data center capacity in the coming years. The money will be incrementally allocated as each gigawatt is deployed. Jensen said no matter what, the U.S. must win on AI so the world, including China, builds on American technology. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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