'The More You Buy, The More You Save.' That Is Part Of The 'CEO Math'

Jensen Huang
co-founder and CEO of Nvidia

Math is more than just one plus one equals two, and some other calculations and formula. This is because math also predict the future.

From using what's called deterministic systems, probabilistic systems, chaos theory, quantum mechanics, and more.

But for business people, math isn’t just about crunching numbers - it’s about making strategic decisions, optimizing operations, and driving growth.

From marketing analysis, budgeting, production planning, pricing strategies, understanding the metrics, break-even analysis, they need to understand this.

For Jensen Huang, the co-founder and CEO of Nvidia, there is what he calls the "CEO Math."

Jensen Huang.
Nvidia founder Jensen Huang in Taiwan, speaking during Computex 2024 in Taipei.

Ahead of Computex, an annual technology exposition held in Taiwan, he said that:

"The more you buy, the more you save."

"That's called CEO math. It's not accurate, but it is correct."

Huang explained the concept by describing why companies should invest in both graphics processing units (GPUs) and central processing units (CPUs).

The two processors can work autonomously, reducing the time it takes to carry out a task from "100 units of time down to 1," he said.

Combining the two processors is already common practice in the personal computing industry.

"We add a GPU, a $500 GPU, to a $1,000 PC, and the performance increases tremendously," he said.

"We do this in a data center. A billion-dollar data center, we add $500 million worth of GPUs, and all of a sudden, it becomes an AI factory."

During the time when an AI arms race is commencing, and that tech companies are rivaling one another to achieve supremacy, they are hoarding the hardware needed for AI computation, more than ever.

So here, the more companies buy, the more they should be able to save, if AI is also the thing they're into.

Huang co-founded Nvidia in 1993, and that the company was originally known for making the type of chips that process graphics, particularly for computer games.

But fast forward, the company's products gained more attention from the public, after many people realized that GPUs can also be a great in mining cryptocurrencies.

And just as with cryptocurrency mining, AI tasks like machine learning and deep learning benefit greatly from the parallel processing power of GPUs.

With the rise of AI, and how tech companies have created an arms race where they rival in making their products superior, Nvidia's popularity goes no where but up.

After all, the 2022 launch of ChatGPT by OpenAI, which started this overall global generative AI race, was made possible by Nvidia chips.

The chatbot was trained using 10,000 of Nvidia's GPUs, clustered together in a supercomputer.

And as tech companies even publicly said that they're hoarding GPUs from Nvidia, Huang becomes the center of everything.