Companies are putting money into the building of the so-called metaverse because it may save them a lot of money in the real world, according to Nvidia CEO Jensen Huang on CNBC’s Jim Cramer on Friday.
Huang presented a picture of networked, virtual reality environments that go beyond supporting enjoyment and commerce in an interview on “Mad Money.” Rather, Huang believes that firms can use the metaverse — or omniverse, as Nvidia like to call it — to eliminate waste and improve operational efficiency.
“We squander a lot of stuff to make up for the fact that we don’t simulate.” In this omniverse, we wish to imitate all factories in metaverses. In the omniverse, we aim to imitate flora. “In the omniverse, we intend to mimic the world’s electrical systems,” Huang explained.
“By doing that, we could decrease the amount of waste, and that’s the reason why the economics are so good for companies,” he continued. “They’re willing to invest a small amount of money to buy into this artificial intelligence capability but what they save is hopefully hundreds and hundreds and hundreds of billions of dollars.”
California-based Nvidia is the world’s leading manufacturer of graphics and artificial intelligence processors. While demand for Nvidia’s chips was already increasing, more attention and investment in the metaverse is a windfall for the company. This is because the company’s processors are critical components of the computing equipment that will power the metaverse.
The notion of the metaverse has been discussed in science fiction circles for decades, but Wall Street is taking note now that a number of digital behemoths, like Facebook-parent Meta, are directing resources into the creation of dynamic, immersive virtual worlds.
Huang’s visit on “Mad Money” comes only two days after Nvidia posted better-than-expected third-quarter earnings and sales. Nvidia stock has been on a rampage in recent weeks, fueled in part by investor confidence about the metaverse. So far this month, the stock is up 29 percent, and it is up 66.6 percent over the last three months.