Nvidia, a very successful company making AI chips, is known for entering new markets with astounding success. Huang, Nvidia’s CEO, transformed its gaming graphics cards company into one leading the AI revolution.

Huang in 2024 is talking about AI’s next wave. He believes robots will bring AI that conforms to the laws of physics and interprets the world around them. He visualizes a world with robotic factories and many products around us will be robotic. He also sees a world with humanoid robots in the coming years.

Nvidia is the market leader in chips that can train and run generative AI systems. He would like to focus on three other areas for potential growth — autonomous vehicles, quantum computing and robots. Nvidia cannot be for years to come just one product company. It is too vulnerable if there are changes in technology. There is a heavy demand for AI chips, but this cannot last for ever.

Nvidia can think of chips for robots, the software and the hardware. It can integrate these functions seamlessly and build the whole robots. There could be legal issues, say anti-trust laws. The company lacks the supply chain and manufacturing expertise for building robotic hardware. Jumping into robotics manufacturing will erode its profits from AI chips. Nvidia has to focus on developing new markets for its chips, rather than jumping into building the whole robots. As a person Huang may not like to enter the industry in a fragmented way. However, it is advisable for it to build the brains and tools for robots. That precisely defined market may not be as profitable as AI’s gold rush today. However, it puts Nvidia in an enviable position — it plugged into robots too.