Interview with Jensen Huang: how the vision of the Metaverse will survive any economic recession

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Nvidia CEO Jensen Huang recently announced that his company had a tough fiscal second quarter with a dramatic slowdown in PC and game sales.

Nvidia has seen a slowdown due to the war in Ukraine and a slowdown in China, with macroeconomic declines around the world negatively impacting consumer demand. Gaming revenue in the second quarter was $ 2.04 billion, down 33% from a year ago and 44% from the previous quarter.

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Yet Huang clings to his optimism about some large, long-term projects, including the construction of Earth-2, a digital twin of our planet that, with sufficient supercomputing simulation capabilities within the Omniverse, could allow scientists to predict climate change for our planet. .

Earth-2 will require the best technology Nvidia can muster, such as its new graphics processing unit (GPU) Hopper and its upcoming central processing unit (CPU) Hopper. He still believes that if Nvidia builds the Earth-2 simulation with meter-level accuracy for the entire planet, then we’ll get the metaverse for free.

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I will be moderating a panel of industry metaverses at the upcoming Nvidia GTC online conference September 19-23. We will also have Nvidia speakers at our MetaBeat conference in San Francisco on October 4, and we will talk about the metaverse again at our GamesBeat Summit Next 2022 event in San Francisco on October 25-26.

Here is an edited transcript of our interview.

Jensen Huang, CEO of Nvidia, presents Omniverse Avatar.

GamesBeat: How do you keep your faith in the metaverse and long-term vision when you see things like the current slowdown?

Jensen Huang: Well, the two are not related. Completely unrelated. On the one hand, the macro environment is a combination of all the things in the world that cause this. It kept piling up. While every event, be it in Europe, Asia or the United States, is foreign to none else, when you keep piling it up, before you even know it, there is a breaking point, even for the global economy. The macroenvironment has finally returned home.

From June it started spinning quite abruptly. The PC industry has seen the largest sequential decline in many years. When it happens this fast, meanwhile, a few months ago, the supply chain was so tight. The cycle times were long. There are a lot of goods in stock, in the supply chain. Suddenly everything fell apart. In our particular case, we will take it head on and sell on the market at a much lower rate in the coming months. We will let the chain normalize, let the inventory of the chain correct itself. We’ll give ourselves a chance to clean up the deck before the next generation arrives.

There are the tactical things, which is what is happening right now, and then there are the strategic things, the future things, that you can’t help but be excited about. The first users who work with us are doing amazing things. The rapid pace of progress we are making: I am more optimistic about Omniverse and the work we are doing there than at any time.

Amazon’s Omniverse warehouse.

GamesBeat: There are forces that will advance the metaverse in a secular way, so in a way that won’t be slowed down by the global economy.

Hoang: We will make sure that this is not the case. We are fortunate that our Omniverse investment is not a separate investment or an orthogonal investment. It is based on the three things our company excels at. We are good with infographics and will continue to push it. We will continue to advance and reinvent infographics as we speak. We will continue to push AI. It is too important. It is capable of solving problems that, as you know, we previously thought were impossible. Third, scientific computation and physical simulation are quite profound. The work we do there is extremely important to many industries and many fields of science.

We put it together. We have united these three pillars in Omniverse. We are the ideal company, the perfect set of skills to bring together and create this next generation of the Internet. I think we are the right company to do it. It’s incredibly hard work, incredibly hard innovation, but it’s the foundation of everything we do.

GamesBeat: Which Parts Do You See Taking Off First? Do you think enterprise-oriented digital twins will push all of this forward, or do you think gaming metaverses will push the collective metaverse forward?

Hoang: The game already does what it does. I don’t need to tell you how exciting everything they do with Fortnite, with Roblox, with brands. There is already a lot to do in the games. There is nothing new in this, I would say. There is constant evolution there, but nothing new.

What’s going to be truly amazing about the industrial metaverse is that Omniverse offers – as it has universal data exchange, enables every tool used in a product design company – you could be a company that builds cars or ships or planes or agriculture or consumer goods or electronics, whatever it is. This allows these companies to have a single platform from a design standpoint: each designer – then CAD engineers, CAE engineers, supply chain teams, and the people who build the factories – run the simulations. Everyone in every business organization can finally be synchronized for the first time.

A fundamental technological montage image of Nvidia Omniverse with a virtual ramen shop.
A fundamental technological montage image of Nvidia Omniverse with a virtual ramen shop.

We see product designers, CAD designers, CAE engineers, operations teams, planning teams – everything BMW is done in planning teams. They all jump to Omniverse. I think when people realize the benefits, the internet connects us all. The reason the internet has been so incredibly useful is that it is literally a platform, a data platform, that an entire company can jump onto. Omniverse does this for all companies dealing with 3D data for the first time.

Whether it’s media and entertainment, manufacturing or product design, we see a lot of excitement around it for this fundamental reason. Once they get it, they say, “Oh my God, this is the data platform for 3D companies, people are doing 3D things.” Companies that produce physical objects, this is the unifying data platform. These are the words you use to describe the internet, except for 3D. We have allowed, for the first time, everyone to jump to a data platform, just like the Internet.

GamesBeat: Do you still believe that the secondary benefit of doing Earth-2, [the supercomputing simulation that is designed to predict climate change for decades to come]do you get the metaverse for free?

Hoang: Yes, absolutely. The main goal of Earth-2 is obviously to help policy makers and researchers, scientists, understand the impact of various forces on the future of the climate. Unless we can predict the climate a billion times faster, we simply won’t be able to run a climate simulation with sufficient regional accuracy to make policy changes and all the new scientific approaches we need to apply to avoid climate change. This is the first goal.

Earth-2
The Earth-2 simulation is coming.

But to do that, we had to invent all kinds of new machine learning models, new physical models. We have to create the virtual environment of the earth. There is GEOSAT information that needs to be collected. There will be layers and layers of Earth-2. One layer is the physical simulation of the climate. But other levels will be related to cities, maps and things like that. Before you know it, Earth-2 really becomes Earth-2.

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