1000x Increase in AI Demand
- NVIDIA’s latest earnings highlight a dramatic surge in AI demand, driven by a shift from simple one-shot inference to more complex, compute-intensive reasoning tasks.
- Reasoning models require hundreds to thousands of times more computational resources and tokens per task, significantly increasing GPU usage, especially for AI coding agents and advanced applications.
- Major hyperscalers like Microsoft, Google, and OpenAI are experiencing exponential growth in token generation, with Microsoft alone processing over 100 trillion tokens in Q1—a fivefold year-over-year increase.
- Hyperscalers are deploying nearly 1,000 NVL72 racks (72,000 Blackwell GPUs) per week, and NVIDIA-powered “AI factories” have doubled year-over-year to nearly 100, with the average GPU count per factory also doubling.
- To meet this unprecedented demand, more than $300 billion in capital expenditure is being invested this year in data centers (rebranded by NVIDIA as “AI factories”), signaling a new industrial revolution in AI infrastructure.