Nvidia CEO says metaverse could save companies billions

Companies are investing money in creating what’s known as the metaverse, because it could ultimately save them some big real-world changes, Nvidia CEO Jensen Huang told Jim Cramer of Friday. CNBC.

In an interview on “Mad Money”, Huang painted a vision of connected virtual reality universes that go beyond the facilitation of leisure and commerce. On the contrary, Huang said he believes companies can rely on the metaverse – or the omniverse, which is Nvidia’s preferred term – to reduce waste and increase operational efficiency.

“We waste a whole lot of stuff to overcompensate for not faking. We want to simulate all the factories in the metaverse, in this omniverse. We want to simulate factories in the omniverse. We want to simulate the world’s power grids in the omniverse, ”Huang said.

“By doing this, we could reduce the amount of waste, and that is why the economy is so good for business,” he continued. “They are willing to invest a small amount of money to buy this artificial intelligence capability, but what they are hopefully saving is hundreds and hundreds and hundreds of billions of dollars.”

California-based Nvidia is the world’s largest graphics chip and artificial intelligence maker. While demand for its semiconductors was already growing, increased attention and investment focused on the metaverse is a boon for Nvidia. This is because the company’s chips play a crucial role in the computing devices that will run the metaverse.

The concept of the metaverse has been around for decades in sci-fi circles, but Wall Street is now noticing that a number of tech giants such as Facebook’s parent Meta are mobilizing resources to create interactive virtual worlds and immersive.

Huang’s appearance on “Mad Money” comes two days after Nvidia reported better than expected earnings and earnings for its third quarter. Nvidia shares have been in tears in recent weeks, due at least in part to investor optimism about the metaverse. The stock is up 29% so far this month and 66.6% in the past three months.

Nvidia’s market cap now stands at $ 824.6 billion, making it the seventh most valued company on the S&P 500.

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