Nvidia Unveils $50 Trillion AI Infrastructure Vision, Emphasizing Physical AI and Autonomous Systems

Nvidia believes physical AI systems are a $50 trillion market opportunity

Jensen Huang, CEO of Nvidia, is giving a keynote at the Nvidia GTC Paris event, where he said Nvidia's physical AI systems are poised to revolutionize industries, with a $50 trillion market opportunity across factories, transportation, and humanoid robots. The company's automotive business is expected to reach $5 billion this year, with a trillion-dollar potential as all cars become fully autonomous. But only 1% of the cars on the road today are L2+ capable today -- suggesting a significant market opportunity. Nvidia announced in Paris that its full-stack Drive AV software is now in full production, starting with the Mercedes Benz CLA sedan. It can enable products ranging from infotainment dashboards to AI-driven driving that uses car supercomputers. The company is also expanding into industrial AI, partnering with Siemens and Deutsche Telekom to build an industrial AI cloud in Germany. Nvidia's Halo safety system is recognized by leading certification bodies, and new AI tools and simulations are being released to advance autonomous driving and robotics. Nvidia said it plans to release Isaac Sim code as open source this week. Upcoming partner launches in Europe include Volvo's new ES 90 sedan (launching in the next few months) and JLR's next-generation fleet of cars, built on Nvidia's full stack Drive AV platform. JLR will launch next year. This is the result of years of collaboration. Nvidia is also release new AI tools and simulation technologies, including three new state-of-the-art Cosmos models for improving AV software performance in tough conditions. Nvidia's Omniverse blueprint for AV simulation is being upgraded with a new feature called Neural Reconstruction, making it easier for AV developers. Rev Lebaredian, VP of Omniverse and Simulation Technology at Nvidia, said there is a growing need for physical AI in factories and general robotics. "Now is the era of physical AI, and the requirement for physical AI is only growing," he said. In the next five years, we'll have a labor shortage of 50 million people, he said. Investing in physical AI, in things like humanoid robotics, is critical, he said. France, Italy, Spain and the U.K. are among the nations building domestic AI infrastructure with an ecosystem of technology and cloud providers, including Domyn, Mistral AI, Nebius and Nscale, and telecommunications providers, including Orange, Swisscom, Telefónica and Telenor. They are all going to deploy more than 3,000 exaflops of Nvidia Blackwell Systems for Sovereign AI. Nvidia also announced the expansion of Nvidia DGX Cloud Lepton -- an AI platform featuring a global compute marketplace that connects developers building agentic and physical AI applications -- with GPUs now available from a growing network of cloud providers. And the company announced that it is teaming with model builders and cloud providers across Europe and the Middle East to optimize sovereign large language models (LLMs), providing a springboard to accelerate enterprise AI adoption for the region's industries. Nvidia announced a collaboration with Novo Nordisk to accelerate drug discovery efforts through innovative AI use cases. The work supports Novo Nordisk's agreement with DCAI to use the Gefion sovereign AI supercomputer. Siemens and Nvidia also said they are expanding their partnership to accelerate the next era of industrial AI and digitalization and enable the factory of the future. "Modern manufacturers face mounting pressure to boost effciency, enhance quality and adapt swiftly to changing market demands," said Jensen Huang, founder and CEO of Nvidia, in a statement. "Our partnership with Siemens is bringing Nvidia AI and accelerated computing to the world's leading enterprises and opening new opportunities for the next wave of industrial AI." Lastly, Nvidia announced it is building the world's first industrial AI cloud for European manufacturers. This Germany-based AI factory will feature 10,000 GPUs including Nvidia DGXTM B200 and Nvidia RTX PROTM Servers and enable Europe's industrial leaders to accelerate every manufacturing application, from design, engineering and simulation to factory digital twins and robotics.

NVIDIA Anticipates AI Infrastructure to Scale Up to a "Whopping" $100 Trillion Valuation - The Birth of the Next Industrial Revolution

The AI hype is far from over, as NVIDIA has declared that the next big opportunity likely lies in AI infrastructure, and this could reach a valuation deemed "impossible" for now. If you feel the AI bandwagon will stop moving well, Jensen seems to have other plans. NVIDIA has been at the forefront of AI computation, from model training to inference, and now agentic AI and physical AI. Team Green has brought artificial intelligence elements into almost all forms of commercial/consumer activities, and if you think that's the end, wait for what NVIDIA's CEO announced at the GTC Paris keynote. Jensen said that Team Green's next focus would be building AI infrastructure, which would be a matter that every government would take seriously, similar to the infrastructure of basic amenities like electricity, water, etc. NVIDIA has revealed the prospect of building up "AI factories" for state-backed organizations. CEO Jensen Huang claims that these are widely different from data centers, except for the fact that both use large-scale clusters. AI factories would be productive and bring revenue to economies, similar to a conventional production factory. The output of these factories will be measured by the "number of tokens" they generate, and governments will race towards achieving a higher number by employing superior and scalable NVIDIA hardware. Well, what's in it for NVIDIA? Team Green has opened a new frontier for scaling up its revenue, as Jensen projects the AI infrastructure market to be valued at around $100 trillion, not immediately but over time. This figure is almost 30x higher than NVIDIA's current capitalization, and the sector is said to bring in the next industrial revolution, where AI will become an essential part of human life. Of course, the AI infrastructure would consist of multiple elements, including humanoid robots, autonomous machines, and much more. While the capitalization figure is optimistic, it does show that there's a lot ahead for NVIDIA. The development of AI infrastructure has already started, considering how NVIDIA has shifted its focus towards sovereign AI, and Jensen has signed multi-billion dollar deals in the Middle East and EU, all focused on putting governments into the AI race. The future is interesting, since the revenue prospects for NVIDIA keep coming.