Nvidia experienced a significant revenue increase, reaching $44.1 billion last quarter, mainly attributed to a surge in token generation by AI giants such as Microsoft and Google. Tokens, the fundamental units in AI outputs, saw a meteoric rise, with Microsoft processing over 100 trillion tokens in the first quarter alone. While this token growth may exceed data center capacity, industry analysts suggest that while this metric isn't perfect for comparisons, its rapid increase signals robust demand for Nvidia's chips. Overall, token generation is increasingly seen as a vital metric for AI success and sustainability.
"OpenAI, Microsoft, and Google are seeing a step function leap in token generation," said Nvidia CFO Colette Kress on the company's Wednesday earnings call.
"Microsoft processed over 100 trillion tokens in Q1, a fivefold increase on a year-over-year basis," she continued.
"Explosive token growth is what really matters, in the longer term," wrote Morgan Stanley analysts ahead of Nvidia's latest earnings call.
"It isn't a clear way to make apples-to-apples comparisons, but it is the closest to a standard that we have without needing more data and analytics," Nguyen said.
Collection
[
|
...
]