Next AI breakthrough will need cheaper computing: Nvidia

Nvidia CEO Jensen Huang predicts future AI services will have reasoning capabilities, but this requires reduced computing costs. Next-gen tools will process queries through multiple steps and reflect on their conclusions. Nvidia aims to boost chip performance 2-3 times annually while maintaining costs, enabling more advanced inference abilities. This could dramatically lower intelligence costs and enable reasoning at inference time. Nvidia currently dominates the AI chip market with over 90% share, but faces competition from in-house alternatives by major tech companies and rival AMD.