Q4 2022 NVIDIA Corp Earnings Call

Speaker 1: If you'd like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star one once again. Thank you. Sumona Jankowski, you may begin your conference.

At this time simply press the Star key followed by the number one on your telephone keypad, if you'd like to withdraw your question Press Star one once again, thank you to Mona Jankovskis you may begin your conference.

Speaker 2: Thank you. Good afternoon everyone and welcome to NVIDIA's conference call for the fourth quarter of fiscal 2022.

Thank you and good luck.

Tony.

And welcome to Mds Conference call for the fourth quarter of fiscal 2022.

Speaker 2: With me today from NVIDIA are Jensen Huang, President and Chief Executive Officer, and Colette Kress, Executive Vice President and Chief Financial Officer.

With me today from India are Jensen, Huang President and Chief Executive Officer, and Colette, Kress Executive Vice President and Chief Financial Officer.

Speaker 2: I'd like to remind you that our call is being webcast live on Engaged Investor Relations website.

I'd like to remind you that our call is being webcast live on <unk> Investor Relations website. The webcast will be available for replay until the conference call to discuss our financial results for the first quarter of fiscal 2023.

Speaker 2: The webcast will be available for replay until the conference call to discuss our financial results for the first quarter of fiscal 2023.

Speaker 2: The content of today's call is in video's property. It can be reproduced or transcribed without a prior written consent.

The contents of today's call is immediate property it can't be reproduced or transcribed without our prior written consent.

Speaker 2: During this call, we may make forward-looking statements based on current expectations. These are subject to a number of significant risks and uncertainties, and our actual results may differ materially.

During this call we may make forward looking statements based on current expectations. These are subject to a number of significant risks and uncertainties and our actual results may differ materially.

Speaker 2: For a discussion of factors that could affect our future financial results in business, please refer to the disclosure in today's earnings release, our most recent Form 10-K and 10-Q, and the report that we may file on form 8-K with the Securities and Exchange Commission.

For a discussion of factors that could affect our future financial results and business. Please refer to the disclosure in today's earnings release, our most recent Form 10-K , and 10-Q and the reports that we may file on form 8-K, with the Securities and Exchange Commission.

Speaker 2: All our statements are made as of today, February 16, 2022, based on information currently available to us. Accepted required by law, we assume no obligation to update any such statement.

Our statements are made as of today February 16, 2022 based on information.

<unk> currently available to us.

As required by law, we assume no obligation to update any such statements.

Speaker 2: During this call, we will discuss non-GAAP financial measures. You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in our CFO commentary, which is posted on our website. With that, let me turn the call

During this call we will discuss non-GAAP financial measures you can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in our CFO commentary, which is posted on our website.

With that let me turn the call over to Colette.

Speaker 3: Thanks, Simona. We had an excellent quarter with revenue up 53% year-on-year to $7.6 billion. We set records for total revenue as well as for gaming, data center, and professional visualization. Full-year revenue was a record $26.9 billion, up 61%, compounding the prior year's growth of 53%.

Thanks, Simona, we had an excellent quarter with revenue up 53% year on year to seven 6 billion shut records for total revenue as well as for gaming data Center and professional visualization for.

Full year revenue was a record $26 9 billion up 61% compounding the prior year's growth of 53% start.

Speaker 3: Starting with gaming, revenue of $3.4 billion rose 6% sequentially and was up 37% from a year earlier. Fiscal year revenue of $12.5 billion was up 61%.

Starting with gaming.

Revenue of $2 4 billion rose, 6% sequentially and was up 37% from a year earlier.

Fiscal year revenue of $12 5 billion was up 61%.

Speaker 3: Gaming has become the top entertainment medium and continues to show strong momentum.

<unk> has become the top entertainment medium and continues to show strong momentum.

Speaker 3: Just last month, Steam hit a record 28 million concurrent users, up 50% in two years.

Last month <unk> hit a record 28 million concurrent users up 50% in two years.

Speaker 3: Record desktop revenue in the quarter was led by our growth in our GeForce RTX 30 series products with continued strength in the high end. At CES, we announced the RTX 3050 GPU, which hit retail in late January , bringing NVIDIA RTX and AI technologies to more mainstream audiences.

Record desktop revenue in the quarter was lot of viral growth and our G Force our chance 30 series products with continued strength in long island.

At CES, we announced the Archie X 30, 50, GPO, which one.

Which hit retail in late January , bringing Nvidia Archie acts and AI technologies to more mainstream audiences.

Speaker 3: laptop gaming revenue also set a record driven by the ramp of the new GeForce RTX 3070 Ti and 3080 Ti GPUs which were also announced at CES.

Top gaming revenue also set a record.

Driven by the ramp of the New G Force, our checks 30, 70 tie and 30 80 tie Gpus, which were also announced at CES.

Speaker 3: These leverage our fourth generation MaxQ technology to enable quiet, thin, and light gaming laptops.

You should leverage our fourth generation Max Q technology to enable Piet thin and light gaming laptops.

Speaker 3: All in, we announced over 160 new laptop designs for NVIDIA Ampere Architecture RTX 30 series GPUs. These include a number of studio systems targeting the tens of millions of creators driving the future of design, innovation, and virtual world.

All in we announced over 160, new laptop.

For Nvidia Amp tier architecture Archie F 30 series Gpus. These include a number of studio systems targeting the tens of millions of creators driving the future of design innovation and virtual worlds.

Speaker 3: In addition to supporting the new RTX 30 series GPUs, Studio laptops feature support for NVIDIA software like Omniverse, Tundus, and Broadcast.

In addition to supporting the New Art chips, 30 series Gpus studio laptops future support sword video software most omnivorous.

On both counts.

Speaker 3: Availability of our gaming products in the channel remains low.

Availability of our gaming products in the channel remained slow.

Speaker 3: NVIDIA RTX ecosystem continues to expand with over 30 new RTX games and applications added this quarter, including blockbuster hits like Battlefield 2042, Grand Theft Auto, The Trilogy, Call of Duty Vanguard, and God of War.

Nvidia RPX ecosystem continues to expand with over 30, new RPX games and applications added this quarter, including blockbuster hits like battlefield 2042 from theft auto the trilogy call of duty Vanguard and God of war.

Speaker 3: In addition, several new titles support NVIDIA Reflex for low-latency gameplay.

In addition, several new title support in video reflect for low latency, England.

Speaker 3: Our GPUs are capable of cryptocurrency mining, so we have limited visibility into how much of this impacts our overall GPU demand. Nearly all desktop NVIDIA Ampere Architecture GeForce GPU shipments are light hash rate to help direct GeForce supply to gamers.

Our gpus are capable of crypto currency mining. So we have limited visibility into how much of this impacts our overall GPU demand.

Nearly all desktop Nvidia <unk> architecture, <unk>, GPU shipments or like how should rates to help direct <unk> supply to English.

Speaker 3: Crypto mining processor revenue is $24 million, which is included in OEM and other.

Christoph <unk> processor revenue was 24 million, which was included in OEM and other.

Speaker 3: We continue to expand the NVIDIA GeForce NOW cloud gaming ecosystem with new hit titles including EA's Battlefield 4 and Battlefield 5.

We continue to expand the Nvidia G Force now cloud gaming ecosystem with new hit titles, including <unk>, four and battlefield five at.

Speaker 3: At CES, we announced a partnership with Samsung to integrate GeForce Now and its smart TVs, starting in Q2 of this year. This follows last month's beta release of the GeForce Now app for LG smart TVs.

At CES, we announced a partnership with Samsung to integrate GFR Schnell and smart Tvs starting in Q2 of this year. This follows last month's beta release of the G Force now for LG Smart Tvs.

Speaker 3: In addition, we teamed up with AT&T to bring GeForce Now to 5G mobile devices in the U.S.

In addition, we teamed up with <unk> to bring Gfr's now two five G mobile devices in the U S. We are.

Speaker 3: We also added our first GFN data center in Canada.

Also added our first <unk> data center in Canada.

Moving to pro visualization.

Speaker 3: Q4 revenue of $643 million was up 11% sequentially and up 109% from a year ago. Fiscal year revenue of $2.1 billion was up 100%.

Q4 revenue of $643 million was up 11% sequentially and up 109% from a year ago.

Year revenue of $2 1 billion was up 100%.

Speaker 3: Sequential growth in the quarter was driven by a shift to higher value workstation and the continued ramp of our NVIDIA Ampere architecture. We believe strong demand is fueled by continued build out for hybrid work environment, as well as growth in key workloads, including 3D design, AI, and rendering.

Sequential growth in the quarter was driven by a shift to higher value workstation and the continued ramp of our video <unk> architecture.

We believe strong demand is fueled by continued build outs for hybrid work environment as well as growth in key workloads, including <unk>, who joined AI and rendering.

Speaker 3: For example, Sony Pictures Imageworks is using NVIDIA RTX to accelerate ray tracing for rendering-related applications. Volkswagen is using NVIDIA RTX for AI to assist in predictive maintenance of their vehicles.

For example, Sony Pictures image works is using Nvidia Archie acts to accelerate ray tracing for rendering related applications.

Volkswagen is using Nvidia RTI for AI to assist and Victor maintenance of their vehicles.

Speaker 3: And Duke Energy is using NVIDIA RTX for AI and VR to map, view, and maintain energy facilities.

Duke energy is using Nvidia Rts for AI, and VR to map view and maintain energy facilities.

Speaker 3: NVIDIA Omniverse Enterprise Software entered general availability, and while it's still in early days, customer feedback so far has been very positive, with multiple significant enterprise licenses already signed. In addition to software licenses, Omniverse also drives computing opportunity for NVIDIA RTX in laptops, workstations, and on-prem servers and the cloud.

Nvidia omni versus enterprise software and toward general availability and while it's still in early days customer feedback. So far has been very positive with multiple significant enterprise license to these already signed.

In addition to software licensing this omni versus also drive computing opportunity for Nvidia, our checks and not tops workstations and on Prem servers and the cloud.

Speaker 3: Omniverse can be used by individuals for free and by enterprise teams via software subscriptions.

<unk> can be used by individuals for free.

Our enterprise team's via software subscriptions.

Speaker 3: At CES, we made the free version of Omniverse for individuals' general availability.

At CES, we made the free version of Omnivores for individuals' general availability.

Speaker 3: Omniverse allows creators with RTX GPUs to connect leading 3D design applications to a single theme and supercharge their work with AI and physics.

On the reverse allows creators with RPX Gpus to connect leading a treaty design applications to a single team and supercharge their work with AI and physics.

Speaker 3: We also announced early access to Omniverse Cloud, which adds one-click capability to collaborate with other artists, whether across the room or across the globe.

We also announced early access to omni first cloud, which adds one click capability to collaborate with other artists whether it across the room or across the globe.

Speaker 3: For digital twin applications, we announced the Isaac Autonomous Mobile Robot Platform using Omniverse and securely orchestrated and cloud delivered with Fleet Command. The platform optimizes operational efficiency and accelerates deployment of logistics robots.

For digital twin and applications, we announced the Isaac Autonomous mobile robot platform, using <unk> and securely orchestrated and cloud delivered with bleak now the platform optimizes operational efficiency and accelerate the deployment of logistics robots.

Speaker 3: It consists of several NVIDIA AI technologies and SDKs, including DeepMap for high-precision mapping, Metropolis for situational awareness, and REOP for real-time route optimization.

It consists of several Nvidia AI technologies, and SD case, including Dayton out for high precision mapping metropolis or situational awareness and Riyadh for real time route optimization.

Moving to automotive.

Speaker 3: Q4 revenue was $125 million, declining 7% sequentially and 14% from the year ago quarter.

Q4 revenue was $125 million declined 7% sequentially and 14% from a year ago quarter.

Speaker 3: Fiscal year revenue of $566 million was up 6%. We have just started shipments of our ORIN-based product platform and expect to return in sequential revenue growth in Q1, with more meaningful inflection in the second half of the fiscal year and momentum building into calendar 2023 and beyond.

Fiscal year revenue of $566 million was up 6%.

So we've just started shipments of our Oregon based platform and expect to return to sequential revenue growth.

In Q1 with more meaningful inflection in the second half of fiscal year <unk>.

Rental building into calendar 'twenty, two 'twenty three and beyond.

Yeah.

Speaker 3: I will now hand it over to Jensen to provide more color on this morning's automotive meeting.

I will now hand, it over to Joseph to provide more color on this mornings automotive news.

Thanks Colette.

Speaker 1: Earlier today, we announced a partnership with Jaguar Land Rover.

Earlier today, we announced a partnership with Jaguar land Rover to.

Speaker 1: to jointly develop and deliver fleets of software-defined cards.

To jointly develop and deliver fleets of software defined corridors.

Starting in 2025, all new Jaguar and land Rover vehicles will have next generation automated driving systems.

Speaker 1: Starting in 2025, all new Jaguar and Land Rover vehicles will have next generation automated driving systems.

Speaker 1: plus AI-enabled software and services built on the NVIDIA Drive platform.

AI enabled software and services built on the Nvidia drive platform.

Speaker 1: Drive Orin will be the AI computer brain running our Drive AV and Drive IX software.

Brian Good morning, we will be the AI computer brain running our drive <unk> and drive IX software.

Speaker 1: and the drive Hyperion sensor network will be the central nervous.

And the drive high Purion sensor network will be the central nervous system.

Speaker 1: This new vehicle architecture will enable a wide spectrum of active safety, automated driving, and parking systems.

This new vehicle architecture will enable a wide spectrum of active safety.

Automated driving and parking systems.

Speaker 1: Inside the vehicle, the system will deliver AI features, including driver and occupant monitoring and advanced visualization of the vehicle's surrounding.

Inside the vehicle the system will deliver AI features including driver occupied monitoring and advanced visualization of the vehicles surroundings.

Speaker 1: We are very much looking forward to partnering with Terry Ballore, JLR's CEO , and his team to reinvent the future of luxury cars.

We are very much looking forward to partner with Terry below re <unk>, our CEO and his team to reinvent this future of luxury cars.

Speaker 1: Our full-stack end-to-end approach is a new business model that offers downloadable AV and AI services to the fleet of JLR vehicles.

Our full stack.

<unk> approach is a new business model that offers downloadable AAV and AI services to the fleet of <unk> vehicles.

Speaker 1: with a shared software revenue stream for both companies over the life of the fleet.

With a shared software revenue stream for both companies over the life of the fleet.

Speaker 1: This partnership follows the template of our announcement with Mercedes Benz.

This partnership follows the template of our announcement with Mercedes Benz.

Speaker 1: Our shared software revenue opportunity with both OEMs will scale with the size of their NVIDIA-powered fleet.

Our shared software revenue opportunity with both Oems will scale with the size of the Nvidia powered fleet.

Speaker 1: which combined can exceed 10 million cars over a decade.

Which combined can exceed 10 million cars over a decade.

Colette back to you.

Thanks Jensen moving to data center record revenue of three 3 billion grew 11% sequentially and 71% from a year earlier fiscal year revenue of $10 6 billion was up 58%.

Speaker 3: Thanks, Jensen. Moving to Data Center. Record revenue of $3.3 billion grew 11% sequentially and 71% from a year earlier. Fiscal year revenue of $10.6 billion was up 58%.

Speaker 3: Data center growth in the quarter was once again led by our compute products on strong demand for NVIDIA AI. Hyperscale and cloud demand was outstanding with revenue more than doubling year on year.

Data center growth in the quarter was once again led by our compute products on strong demand for Nvidia AI Hyperscale.

Hyperscale and cloud demand was outstanding with revenue more than doubling year on year.

Speaker 3: Vertical Industries also posted strong double-digit year-on-year growth led by consumer internet companies.

Critical industries also posted strong double digit year on year growth led by consumer Internet companies.

Speaker 3: The flagship NVIDIA A100 GPU continued to drive strong growth. Inference-focused revenue more than tripled year-on-year. Accelerating inference growth has been enabled by widespread adoption of our Triton inference server software, which helps customers deliver fast and scalable AI in production.

The flagship Nvidia a 100 GPU continued to drive strong growth in trend focused revenue more than tripled year on year.

Accelerating <unk> growth has been enabled by widespread adoption of our Triton Conference server software, which helps customers deliver fastest scalable AI in production.

Speaker 3: Data center compute demand was driven by continued deployment of our Ampere architecture-based products for fast-growing AI workloads, such as natural language processing and deep learning recommendation systems, as well as cloud computing.

Data center compute demand was driven by continued deployment of our Empire architecture based products for fast growing AI workloads, such as natural language processing and deep learning recommendation systems as well as cloud I'm kidding.

Speaker 3: For example, Block Inc., a global leader in payment, uses conversational AI in its Square Assistant to schedule appointments with customers. These AI models are trained on NVIDIA GPUs and AWS and perform inference 10x faster on the AWS GPU service than on our CPUs.

For example block Inc. A global leader in payments users conversational AI and its square assistant to schedule appointments with customers. These AI models are trained on Nvidia Gpus in AWS and perform interim Henrik faster on the AWS GTT service and on our <unk>.

Cpus.

Speaker 3: Social media companies Snap used NVIDIA GPUs and Merlin deep recommendator software to improve inference cost efficiency by 50% and decrease latency with 2X.

Social media company snap used Nvidia Gpus, and Maryland, Chief recommend data software to improve entrance cost efficiency by 50% and decreased latency the toolbox.

Speaker 3: For the 3rd year in a row, industry benchmarks show that NVIDIA AI continues to lead the industry in performance.

For the third year in a row industry benchmarks show that in video AI continues to lead the industry in proponents.

Speaker 3: Along with partners like Microsoft Azure, NVIDIA sets records in the latest MLPerf benchmarks for AI training across eight popular AI workloads, including computer vision, natural language processing, recommendation systems, reinforcement learning, and object detection. NVIDIA AI was the only platform to make submissions across all benchmarks and use cases, demonstrating versatility as well as high performance.

Along with partners like Microsoft Azure and video such records and the latest <unk> benchmarks for AI training across eight popular AI workloads, including computer vision natural language processing recommendation systems reinforcement learning and object detection, Nvidia AI would be one.

<unk> platform to make submissions across all benchmarks used.

Use cases, demonstrating a fatality as well as high performance.

Speaker 3: The numbers show performance gains on our A100 GPUs of over 5x in just 18 months, thanks to continuous innovations across the full stack in AI algorithms, optimization tools, and system software.

The numbers show performance gains on a 100 gpus of over five X injustice two months, thanks to continuous innovation across the full stack and AI algorithms.

<unk> tools and system software.

Speaker 3: Over the past three years, they showed performance gains of over 20x powered by advances we have made across our full stack offering GPUs, networks, systems, and software.

Past three years, they should performance gains of over 20 ex powered by advances we have made across our full stock offering Gpus networks systems and software.

The leading performance of Nvidia AI is sought after and some of the worlds most technically advanced companies.

Speaker 3: The leading performance of NVIDIA AI is sought after by some of the world's most technically advanced companies.

Speaker 3: MetaPlatforms unveiled its new AI supercomputer Research Supercluster with over 6,000 A100 GPUs linked to an NVIDIA Quantum InfiniBand network.

Meta platforms unveiled its new AI supercomputer research supercluster with over 6000, a 100 Gpus linked to an Nvidia Qualcomm Infiniband network.

Speaker 3: META's early benchmarks showed a system can train large natural language process models.

That is always benchmarks showed its system can training large natural language processing.

Speaker 3: models 3x faster and run computer vision jobs 20x faster than the prior system.

Models, three X faster and run a computer vision jobs, 20 X faster than the prior system.

Speaker 3: In a second phase, later this year, the system will expand to 16,000 GPUs that Meta Belize will deliver 5 exaflops of mixed precision AI performance.

And a second phase later this year the system will extend to 16000 Gpus. The medical leaves will deliver five extra plot of mixed precision AI performance.

Speaker 3: In addition to performance at scale, META cited extreme reliability, security, privacy, and flexibility to handle a wide range of AI models as its key criteria for the system.

In addition to performance at scale matter titled Extreme reliability security privacy and flexibility to handle a wide range of canine models as its key criteria for the system.

Speaker 3: We continue to broaden the reach and ease the adoption of NVIDIA AI into vertical industries.

We continue to broaden the reach and ease the adoption of Nvidia AI into vertical industries.

Speaker 3: Our ecosystem of NVIDIA certified systems expanded with Cisco and Hitachi Antana, which joined Dell, Hewlett Packard, Enterprise, Inspur, Lenovo, and Supermicro, among other silver manufacturers.

Our ecosystem of Nvidia certified systems expanded with Cisco and Hitachi and Tom.

Joining Dell Hewlett Packard enterprise and spur Lenovo and supermicro among other server manufacturers.

Speaker 3: We released version 1.1 of our NVIDIA AI enterprise software, allowing enterprises to run accelerated AI workloads on VMware v6.

We released version one one of our Nvidia AI enterprise software, allowing enterprises to Baja accelerated a workload on Vmware it before.

Speaker 3: on mainstream IT infrastructure as well. And we expanded the number of system integrators qualified for NVIDIA AI enterprise.

Mainstream IC.

Infrastructure as well and we expanded the number of system integrators qualifying for Nvidia AI engine.

Speaker 3: Forrester Research in its evaluation of Enterprise AI Infrastructure Providers recognized NVIDIA in the top category of LEAD.

Forrester research in its evaluation of enterprise AI infrastructure providers recognized Nvidia and the top category of leaders.

Speaker 3: An example of a partner that's helping to expand our reach into enterprise IT is Deloitte, a leading global consulting firm, which has built its center for AI computing on NVIDIA DGX SuperPOWER.

An example of a partner that's helping to expand our reach into enterprise.

<unk> is.

A leading global consulting firm, which has built its center for AI computing on Nvidia Dji superpowers.

Speaker 3: At CES, we extended our collaboration to AV development, leveraging our own robust AI infrastructure, and Deloitte's team of 5,500 system integration developers and 2,000 data scientists to architect solutions for truly intelligent transportation. Our networking products.

We extended our collaboration to AAV development, leveraging our own robust AI infrastructure and Deloitte team of 5500 system integration developers in 2000 data scientists to Parker Tech solutions or truly intelligent transportation.

<unk>.

Our networking products posted strong sequential and year over year growth.

Speaker 3: driven by exceptional demand across use cases ranging from cloud computing, supercomputing, and enterprise to storage. These are now adapters led growth driven by adoption of our next generation products and higher speed deployment.

Driven by exceptional demand across use cases, ranging from cloud computing supercomputing and enterprise storage Ethernet adapters led growth driven by adoption of our next generation products and higher speed departments.

Speaker 3: While revenue was gated by supply, we anticipate improving capacity in coming quarters, which should allow us to serve the significant customer demands we are seeing.

While revenue was gated by supply, we anticipate improving capacity in coming quarters that should allow us to serve them.

Michigan customer demand <unk> seen.

Speaker 3: Across the board, we are excited about the tracks that we are seeing with our new software business models. Including NVIDIA AI, NVIDIA Omniverse and NVIDIA Thrive.

Across the board we are excited about the traction we're seeing with our newest software business models, including Nvidia AI Nvidia on reverse and in video right.

Speaker 3: We are still early in the software revenue ramp. Our pipelines are building as customers across the industries seek to accelerate their pace of adoption and innovation with NVIDIA.

We are still early in the software revenue ramp our pipelines are building as customers across the industries seek to accelerate the pace of adoption and innovation with Nvidia.

Speaker 3: Now, let me turn it back over to Jensen for some comments on.

Now, let me turn it back over to Johnson for some comments on on.

Speaker 1: Thanks, Colette. Last week, we terminated our efforts to purchase an arm.

Thanks Glenn.

Last week, we terminated our efforts to purchase online.

Speaker 1: When we entered into the transaction in September 2020, we believed it would accelerate Arm's focus on high-performance CPUs and help Arm expand into new markets.

When we entered into the transaction in September 2020, we believed it would accelerate arms focus on high performance Cpus and help <unk> expand into new markets.

Speaker 1: benefiting all our customers in the entire ecosystem. Like any combination of

Putting all of our customers and the entire ecosystem.

Like any combination of pioneers of important technologies.

Speaker 1: our proposed acquisition spurred questions from regulators worldwide. We appreciated the

Our proposed acquisition spurred questions from regulators worldwide.

We appreciated the regulatory concerns.

Speaker 1: For over a year, we'd work closely with SoftBank and Arm to explain our vision for

For over a year.

Worked closely with Softbank and arm to explain our vision Portland.

Speaker 1: and reassure regulators that NVIDIA would be a worthy steward of the Arm ecosystem.

Reassured regulators and <unk>.

Video would be a worthy stewards of the arm ecosystem.

We gave it our best shot.

Speaker 1: But the headwinds were too strong, and we could not give regulators the comfort they needed to approve our deal.

But the headwinds were two strong and we could not give regulators the comfort they needed to improve our deal.

Speaker 1: NVIDIA's working to accelerate computing, and our overall strategy will continue as before. Our focus is accelerated computing.

Nvidia is working on accelerated computing and our overall strategy will continue as before.

Our focus is accelerated computing.

Speaker 1: We are on track to launch our ARM-based Grace CPU, targeting giant AI and HPC workloads in the first half of next year.

We are on track to launch our RMB, great CPU targeting Julien AI and HBC workloads in the first half of next year.

Our 20 year architectural license to arms IP allows us to full breadth and flexibility of options across technologies and markets.

Speaker 1: ARMS IP allows us the full breadth and flexibility of options across technologies and markets.

Speaker 1: we will deliver on our three-chip strategy across CPUs, GPUs, and DPUs.

We will deliver on our three chip strategy across Cpus Gpus and Gpus.

Speaker 1: whether x86 or arm, we will use the best CPU for the job.

Whether X 86 of our arm.

We'll use the best CPU for the job.

Speaker 1: and together with partners in the computer industry, offer the world's best computing platform to tackle the impactful challenges of our time.

Together with partners in the computer industry offer the world's best computing platform to tackle the impactful challenges of our time.

Back to you Colette.

Speaker 3: Thanks, Jennifer. We're going to turn to our P&L and our outlook. For the discussion of the rest of the panel, please refer to the CFO commentary published earlier today on our industrialization website.

Thanks, Jen, Jonathan we're going to turn to our P&L and our outlook.

The discussion with the rest of the P&L. Please refer to the CFO commentary published earlier today on our industrial Relations website, let me turn to the outlook for the first quarter of fiscal 2023, we expect sequential growth to be driven primarily by data center.

Speaker 3: Let me turn to the outlook for the 1st quarter of fiscal 2023. We expect sequential growth to be driven primarily by data center. Damon will also.

Damian will also contribute to growth.

Speaker 3: Revenue is expected to be $8.1 billion, plus or minus 2%. Gap and non-gap gross margins are expected to be 65.2% and 67%, respectively, plus or minus the debasement point.

Revenue is expected to be $8 1 billion, plus or minus 2% GAAP and non-GAAP gross margins are expected to be 65, 2% and 67%, respectively, plus or minus 50 basis points.

Speaker 3: GAAP operating expenses are expected to be $3.55 billion, including the ARM write-off of $1.36 billion. non-GAAP operating expenses are expected to be $1.6 billion.

GAAP operating expenses are expected to be three.

355 billion, including the arm right off of 1601.

non-GAAP operating expenses are expected to be one 6 billion.

Speaker 3: For the fiscal year, we expect to grow non-GAAP operating expenses at a similar percent as in fiscal 2022.

For the fiscal year, we expect to grow non-GAAP operating expenses at a similar percent as in fiscal 2022.

Speaker 3: Gap and non-gap, other operating, other income and expenses are both expected to be an expense of approximately $55 million, excluding gains and losses on non-affiliated investments.

GAAP and non-GAAP other operating other income and expenses are both expected to be an expense of approximately $55 million, excluding gains and losses and non affiliated investments.

Speaker 3: Gap and non-gap tax rates are expected to be 11% and 13%, plus or minus 1%, excluding discrete items.

GAAP and non-GAAP tax rates are expected to be 11% from 13% plus or minus 1%.

<unk> discrete items.

Speaker 3: Capital expenditures are expected to be approximately $350 million to $400 million.

Capital expenditures are expected to be approximately 350 million to 491.

Speaker 3: Further financial details are included in the CFO commentary and other information available on our IR website.

Further financial details are included in the CFO commentary and other information available on our IR website.

Speaker 3: In closing, let me highlight upcoming events for the financial community. We will be attending the Morgan Stanley Technology, Media, and Telecom Conference in person on March 7th. We will also be hosting a virtual Investor Day on March 22nd alongside the GPU Technology Conference. This will follow Jensen's opening keynote, which we invite you to tune in for.

In closing, let me highlight upcoming events for the financial community, we'll be attending the Morgan Stanley Technology Media <unk>.

Telecom conference in person on March seven.

Also be hosting a virtual investor day on March 22nd alongside the GPU Technology Conference. This will follow up Jensen opening keynote, which we invite you to tune in for them.

Speaker 3: Our earnings call to discuss the results for our first quarter of fiscal 2023 is scheduled for Wednesday, May 27th.

Our earnings call to discuss the results for our first quarter of fiscal 2023 is scheduled for Wednesday may 27.

Speaker 3: We will now open the call for questions. Operator, will you please hold for questions?

We will now open the call for questions. Operator will you. Please poll for questions.

Thank you at this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad, we'll pause for just a moment to compile the Q&A roster. As a reminder, please limit yourself to one question.

We will take our first question from the sheer Hari with Goldman Sachs and company. Your line is open.

Speaker 4: Great. Thank you so much for taking the question. Jensen and Colette, I wanted to ask about data center. You know, Colette, based on your guidance, you're probably guiding data center growth on a year-over-year basis to accelerate into the April quarter. You talked about hyperscale, cloud growing more than 2x.

Great. Thank you so much for taking the question.

Jonathan any collateral I wanted to ask about data center.

Based on your guidance.

Probably guiding data center growth on a year over year basis to accelerate.

And to the April quarter, you talked about Hyperscale cloud growing more than <unk>.

Speaker 4: and enterprise or verticals growing strong double digits in the January quarter. Can you kind of speak to the drivers for April and perhaps speak to visibility into the second half of the fiscal year as well in data center? Thank you.

Enterprise or verticals growing strong double digits in the January quarter can you kind of speak to the drivers for April and perhaps speak to visibility in to the into the second half of the fiscal year as well as data center. Thank you.

Sure I'll start and I'll turn it over to Jensen for.

Speaker 3: I'll start and I'll turn it over to Jensen. For Q1, our guidance can include an acceleration of data center from where we left in terms of Q4. We will have growth across several of our market platforms within Q1, both data center, gaming, and probably a couple others. But yes, there is expected to be accelerated growth as we move into Q1.

For Q1, our guidance.

<unk> include an acceleration of data center from where we left in terms of Q4.

We will have growth across several of our markets.

Within Q Q1, both data center gaming and probably a couple of others.

But yes, there is expected to be accelerated growth as we move into Q1 I'll turn it over to Jensen just talk about the drivers that we see it for the quarter and also for portfolio.

Speaker 3: I'll turn it over to Johnson to talk about the drivers that we see for the quarter and also for the whole year.

Speaker 1: Yeah, we have several. We have several. First of all, so she agreed to hear from you. We have several growth drivers in.

Yes, we have several we have some room.

First of all good to hear from you.

We have several growth drivers.

Data centers.

Speaker 1: There's Hyperscale, Public Cloud.

There is hyperscale.

Public cloud <unk>.

Speaker 1: enterprise core and enterprise edge. We're seeing growth growth across the entire spectrum. There are several different use cases that are that are particularly exciting.

Enterprise core.

Price edge, we're seeing growth growth across the entire spectrum. There are several different use cases that are that are particularly exciting.

Speaker 1: large language models, language understanding models triggered by the invention of transformers, which is probably one of the most important AI models that's been invented in some time.

Large language models language.

Understanding months triggered by the invention of Transformers, which is which is probably one of the most important AI models thats been invented in some time.

Hi.

Speaker 1: Conversational AI used for customer service, chatbots, a whole bunch of customer service applications. It could be web-based, it could be point-of-sale-based, it could be cloud-based.

Conversational AI.

Used for use for customer service chat bots.

A whole bunch of customer service applications that can be web based it could be point of sale base that could be cloud based.

Speaker 1: Recommender systems, deep learning based recommender systems are making groundbreaking improvements. And.

Recommends systems deep learning based recommend your systems are making groundbreaking improvements.

And in cloud graphics.

Speaker 1: all of the work that we're doing in putting rendering or putting simulations up in the cloud, cloud gaming, Android cloud gaming, are really driving adoption in the cloud. And so, so many different use cases, but across all of the different platforms in data centers.

And all the work that we're doing in <unk>.

Putting <unk> we're putting.

Our simulations within the cloud cloud gaming Android gaming.

Are you really driving adoption in the cloud and so many different use cases, but across across all of the different platforms and data centers.

Speaker 1: Next we'll go to CJ Muse with Evercore ISI.

Next we'll go to C J Muse with Evercore ISI.

Speaker 5: Yeah, good afternoon. Thank you for taking the question. I guess another question on the data center side curious if you can speak to supply constraints on the wafer side and whether that played a role in terms of capping revenues in the January quarter and and how you see the that, you know, becoming less of a of a headwind for you as you proceed through the year.

Yes. Good afternoon. Thank you for taking the question I guess another question on the on the data center side.

Curious if you can speak to.

Supply constraints on the wafer side of weather.

That played a role in terms of campaign.

Revenues in the January quarter, and how you see the.

That would.

Becoming less of a.

Headwind for you as you proceed through the year.

Yes.

Speaker 3: Thanks CJ for the question. I'll start on the data center supply. We discussed last quarter and discussed today. We still have some supply constraints across some of our businesses.

Thanks C. J for the question I'll start on the data center supply as we discussed last quarter and discussed today, we still have some supply constraints across some of our best incentives networking in the data center business.

Speaker 3: Networking in the data center business has been a supply constraint. We're improving every single day, and we do expect to improve supply each quarter as we enter into fiscal year 2023.

He has been on supply constrained, we're improving every single day.

We do expect to improve supply each quarter as we enter into fiscal year 'twenty three.

Speaker 3: So that is probably the key area within our data center, but from time to time, there can be other types of focus in data centers.

So that is probably the key area within our data center, but from time to time, there can be other types of traffic from Davidson.

Speaker 3: So, turn the rest of the question to Jensen in terms of how about the rest of the year as well.

Turn the rest of the question.

Suggestion in terms of housing.

How about the rest of the year as well.

Speaker 6: Yeah, Collette captured it well. We are supply constrained. Our demand is greater than our supply.

Yes.

Captured it well.

We are supply constrained our demand is greater than our supply.

Speaker 1: As you know, our data center product line consists of GPUs, NICs, Bluefield DPUs,

As you know our datacenter product line consists of Gpus.

Mix.

Bluefield Gpus.

Quantum and spectrum switches.

Speaker 1: HGX, if you will, system component, meaning that the entire motherboard or the entire GPU board is delivered in combination because it's so complicated.

H Gx.

If you will system component, meaning that.

The entire motherboard or the entire GPU board is.

Delivered.

Combination because it's so complicated.

Speaker 1: And so we have products that span a broad reach of use cases for data centers, from training of AI models

And so so we have we have products that span a broad reach of business use cases for data centers from training of AI models.

Speaker 1: to inferencing at very large scale, to universal GPUs for public cloud.

Two infancy at very large scale to.

Two universal Gpus for public cloud.

Speaker 7: industry standard servers, commodity servers for enterprise use.

Got it got it.

Industry standard servers commodity servers.

Enterprise use.

Speaker 1: and supercomputing systems that use InfiniBand and quantum switches.

In supercomputing systems.

Use infiniband in quantum switches.

Speaker 1: And so the application space is quite broad. We saw demand constraint pretty much across the entire range. Our operations team did a fantastic job this year, both in executing in all of these complicated products, but also in expanding our supply base.

So the application space is quite broad we saw demand constrained pretty much across the entire range.

Our operations team did a fantastic job this year.

Both both in executing in all of these complicated products, but also in expanding our supply base.

Speaker 1: we expect supply to improve each and every quarter going forward. And this quarter, this coming quarter, the Q1, the April quarter is based on guidance that Colette just made, is consistent with an increasing supply base. We expect to still be demand constrained, but our supply base is going to increase this quarter, this next quarter, and pretty substantially in the second half. Thank you.

We expect supply to improve.

Each and every quarter going forward.

This quarter does coming quarters. The Q1, the April quarter is based on guidance that Colin.

Just made.

System with an increasing supply base, we expect to still be demand constrained.

But our supply base is going to increase this quarter. This next quarter and pretty substantially in the second half.

Next we'll go to.

Joe Moore with Morgan Stanley .

Okay.

Speaker 5: Great, thank you. I wonder if you could talk a little bit more about Grace, now that the strategy is separated from the acquisition of ARM. What are your aspirations there? Is it going to be primarily oriented to the DGX and AJX systems business versus merchant ships? Just how are you thinking about that opportunity long-term?

Great. Thank you I'm wondering if you could talk a little bit more about grace now that the strategy and are separated from the acquisition of arm.

What are your aspirations there is it going to be primarily oriented to the <unk> systems business versus merchant chips. Just how are you thinking about that opportunity long term.

Speaker 1: Yeah, thanks, Joe. We have we have multiple arm projects going in the company. From connected.

Yes, Thanks, Joe.

We have multiple.

<unk> projects going in the company.

Connected from devices.

Speaker 7: to robotics processors.

Two.

Robotics processors, such as the new Oregon, that's going into autonomous vehicles and robotics systems.

Speaker 1: such as the new O-ring that's going into autonomous vehicles and robotic systems.

Speaker 1: industrial automation, robotics, and such.

Industrial automation robotics and such.

Speaker 1: Orin is doing incredibly well. It started production and as we mentioned earlier, it's going to drive an inflection point starting in Q2, but accelerating through Q3 and into several years after as we ramp into all of the electric cars and all of the robotic applications and mobile taxis and so on.

Oregon is doing incredibly well.

It started production.

As we mentioned earlier.

Going to drive an inflection point starting in Q2.

But accelerating through Q3 and the several years after as we ramp into longer be electric cars in the robotic applications and global taxis and such.

Speaker 1: We also have ARM projects with the CPU that you mentioned, Grace.

We also have.

Arm projects.

With.

The CPU that you mentioned grace.

Speaker 1: We have Grace, and you surely have the follow-ons to Grace. And you could expect us to do a lot of CPU developments around the ARM architecture.

We have grace and surely have the phone wants to Greece, and you could expect us to do on modules.

CPU developments around the arm architecture.

Speaker 1: One of the things that's really devolved nicely over the last couple of years is the success that ARM has seen in hyperscalers and data centers.

One of the things that's.

<unk> really developed nicely over the last couple of years.

Is the success that <unk> seen.

Hyperscale or <unk> and.

And data centers and it has really accelerated and motivated them to accelerate the development of higher end Cpus and so youre going to see a lot of exciting Cpus coming from from us.

Speaker 6: And it's really accelerated and motivated them to accelerate the development of higher end CPUs.

Speaker 6: And so, you're going to see a lot of exciting CPUs coming from us. And Grace is just the first example. You're going to see a whole bunch of them beyond that. But our strategy is accelerated computing. That's ultimately what we do for a living. We, as you know, love it where there's any CPU.

Grace Grace's just the first example that youre going to see a whole bunch of them.

Beyond that but our strategy is accelerated computing that's ultimately.

What we do for living.

As you know love.

<unk> there is <unk> Cpus.

Speaker 1: If it's an x86 from any vendor, so long as we have a CPU, we could connect NVIDIA's platform to it and accelerate it for artificial intelligence or computer graphics, robotics, and such. And so, we love to see the expansion of CPU footprints, and we're just thrilled that ARM is now growing into robotics and autonomous vehicles and cloud computing and supercomputing. Thank you.

If its an X 86 from from any vendor so long as so long as we.

Have a CPU, we could connected video platform to it and accelerated for artificial intelligence and computer graphics robotics, and such and so we love to see the expansion of CPU footprints.

We're just thrilled that the arm is now growing into robotics and autonomous vehicles.

Cloud computing and supercomputing.

Speaker 6: and all these different applications. And we intend to bring the full spectrum of NVIDIA's accelerated computing platform to NVIDIA ARM CPUs.

And all these different applications and we intend to bring the full spectrum was in videos accelerated computing platform.

Nvidia arm Cpus.

Next we'll go to John Pitzer with credit Suisse.

Speaker 4: Yeah, good afternoon, guys. Thanks for letting me ask the question. Just on the inventory purchase obligation.

Yes. Good afternoon, guys. Thanks for letting me ask the question Clinton, Jonathan just on the inventory purchase obligations.

Speaker 4: I think this was the fourth quarter in a row where you've seen greater than 30% sequential growth. And it's the first quarter where that number is now eclipsing kind of your quarterly revenue guide. And so I guess I'm trying to figure out to what extent is this just a reflection of how tight things are across the semi-industry.

This was the fourth quarter in a row, where <unk> seen greater than 30% sequential growth in the first quarter with that number is now eclipsing kind of your quarterly revenue guidance and so I guess I'm trying to figure out to what extent is this just a reflection of how tight things are across the semi industry to what extent. It is the poker tell of kind of how bullish you are on future.

Speaker 4: To what extent is the poker tell of kind of how bullish you are on future demand and relative to your commentary that supply starts to get better throughout the year, should we expect That number to start to level off or as the mix moves more to data center more to longer cycle times more complicated devices should that number continue to grow.

And relative to your commentary.

That supply starts to get better throughout the year should we expect that number to start to level off as the mix moves more to data center more to longer cycle times more complicated devices should that number continued to grow.

Speaker 6: The factors, the drivers that you mentioned in the supply chain, we expanded our supply chain footprint.

The factors the drivers that you mentioned.

In the supply chain.

We expanded.

<unk> expanded our supply chain.

Footprint.

Speaker 6: significantly this year to prepare us for both increased supply base and supply availability in each one of the quarters going forward, but also in preparation for some really exciting product launches.

Significantly this year.

To prepare us for both increased supply base and supply availability and each one of the quarters going forward, but.

Also in preparation for some really exciting product launches.

Speaker 6: As mentioned, ORN ramping into autonomous vehicles is brand new. This is the inflection point of us growing into autonomous vehicles. This is going to be a very large business for us going forward.

As mentioned.

Oren ramping into autonomous vehicles is brand new.

This is the inflection point of us growing into autonomous vehicles, and this is going to be a very large business for us going forward.

Speaker 1: It was already mentioned, Grace is a brand-new product that has never been on NVIDIA's roadmap, and we already see great success with customers who love the architecture of it and are desperately in need of the type of capability that Grace brings.

It was already mentioned Grace is a brand new product that has never been on the video roadmap.

And we already see great success with customers, who love the architecture of it.

Desperately in need of the type of capability that got raised springs.

Speaker 6: And this should be a pretty exciting year for new product launches. And so we're preparing for all of that, laying the foundation for us to bring all those exciting products to the marketplace.

And this should be a pretty exciting.

Exciting year for new product launches and so we're preparing for all of that lays the foundation for us to bring all those exciting products to the marketplace.

Next we'll go to Tim Arcuri with UBS.

Speaker 1: Thank you very much. Obviously, there's a lot more talk from you about software and I think it's still kind of a little bit of a black box for a lot of investors, and I know, Jensen, that you've talked about software as a medium to basically open up new markets, but I'm wondering maybe if you can sort of quantify how big the software licensing revenue is today, and maybe when you might start to break it out like you did data center, which really got the stock moving in a huge, huge way. Thanks.

Thank you very much.

Honestly there is a lot more talk from you about software in and I think it's still kind of a little bit of a black box for a lot of investors.

And I know Jensen.

Talked about software as a medium to basically open up new markets, but I'm wondering maybe if you can sort of quantify how big the software licensing revenue is today and maybe.

When you might start to break it out like you do data center, which really got the stock moving at a huge huge way. Thanks.

Speaker 1: Yeah, NVIDIA is a software-driven business. Accelerated computing is a software-driven business.

Yes, Andrea software Nvidia is a software driven business accelerated computing is a software driven business.

Speaker 7: It starts from recognizing what domain of applications we want to accelerate and can accelerate and then building an entire stack from the processor to the system, to the system software, the acceleration engines.

It starts from <unk>.

Recognizing what domain of applications.

Want to accelerate and can accelerate and then building an entire stack from the processor to the system to the system software the acceleration engines.

Speaker 1: and potentially even the applications itself, like the software that we were mentioning earlier, NVIDIA Drive.

Potentially even the applications itself like the software that we were mentioning earlier Nvidia drive Nvidia AI.

Speaker 1: NVIDIA AI and NVIDIA Omniverse. These are applications that sit on top of system software.

Nvidia.

Omnivores. These are these are applications that sit on top of system software.

Speaker 7: and are really valuable to the market.

And.

Are really valuable to the marketplace.

Speaker 7: The way to think about our software licensing, so we've always been a software-driven business, but for the very first time, we have packaged, licensable software available to customers. The way that we license software for NVIDIA AI Enterprise is per node of server.

The way to think about our software licensing.

So we've always been a software driven business, but for the very first time, we have packaged <unk> software.

Hi.

<unk> available to customers.

The way that we license software for Nvidia AI enterprise is per node of server.

Speaker 7: There's some 20, 25 million servers that are installed in the world today in enterprises, not including clouds. We believe that every single server in the future will be running AI software.

There is there is.

So $20 25 million servers that are installed in the world today.

In enterprises, not including clouds.

We believe that every single server in the future will be running AI software.

Speaker 7: And we would like to offer an engine that enables enterprises to be able to use the most advanced, the most trusted, the most utilized AI engine in the world. And so that is essentially the target market, if you will, for NVIDIA AI.

We.

We would like to offer an engine that.

At that enables enterprises to be able to use the most.

<unk> advanced the most trusted the most utilized AI engine in the world and so that is essentially.

The target market, if you will for Nvidia AI.

Speaker 6: The NVIDIA Omniverse is targeting, is designed for creators.

The Nvidia <unk> is targeting.

It's designed for.

Creators.

Speaker 6: contributing content to a virtual world and connected to robots that are contributing to content in a virtual world.

Contributing content to a virtual world and connected to robots that are contributing to content.

A virtual world.

Speaker 6: and so it's based on connections. There are 40 million designers and creators around the world. There are going to be hundreds of millions of robots. Every single car will essentially be a robot someday and those are connections that will be connected into a digital twin system like Omniverse and those are so the Omniverse business model is per connection per year.

So it's based on connections there are 40 million.

Designers and creators around the world.

There are going to be hundreds of millions of robots.

Every single card will essentially be a robot someday and bills are connections that will be connected into a digital twin system like on diverse.

And those are.

So the <unk> diverse business model as per connection per year and.

Speaker 1: And in the case of NVIDIA Drive, we

And in the case of in the case of.

Nvidia drive.

We share the economics of the software that we deliver.

Speaker 7: of the software that we deliver, and if it's AV software.

<unk> software.

Speaker 7: or parking software or cabin-based AI software, whatever the licensing is or whatever the service, if it's an upfront license, we share the economics of that. If it's a monthly service subscription, we share the economics of that. But basically, for the cars that we are part of, that we're developing, the end-to-end service, we won't get the benefits of.

For parking software.

Cabin based AI software, whatever the licensee years or whatever.

The service is.

Upfront license, we share the economics of that if it's a monthly service subscription we shared the economics of them.

But basically for the cars that we are positive that we're developing the end to end service, we will get the benefits of.

Speaker 7: the economics of that for the entire life of the fleet of the car.

The economics of that for the entire life of the fleet at the corner.

Speaker 1: And so you could imagine what 10 million cars with modern car lifetimes of 10 to 20 years, the economics and the market, the install opportunity is quite high.

And so you could imagine what 10 million cars with.

With modern card lifetimes of $10 10 to 2010 to 20 years.

The economics in the market the installed opportunity is quite high.

Speaker 1: And so our business opportunity is based on those factors. But our software business really started several years ago with virtual GPUs, but this year was when we really stepped it up and offered for the very first time NVIDIA AI Enterprise, Omniverse, and Drive. And so watch this spot. I think this is going to be a very significant business opportunity for us, and we look forward to reporting on it. Thank you.

So our business opportunity is based on those factors.

Our software business really really started.

Several years ago with virtual Gpus, but this year was when we really stepped it up and offered for the very first time, Nvidia enterprise diverse and drive and so.

Watch the spot I think this is going to be a very significant business opportunity for us.

We look forward to reporting on it.

Next we'll go to Vivek Arya with Bank of America.

Speaker 8: Thanks for reading my question. Jensen, in the past, you mentioned about a 10% or so adoption rate for AI among your customer base. I was hoping you would quantify where we are in that adoption curve that people can differentiate between the adoption differences between your hyperscale and enterprise customers, and then.

Thanks for taking my question.

<unk> been in the past you mentioned about a 10% or so adoption rate for AI. Among your customer base I was hoping you could quantify where we are in that adoption curve of cheaper kind of differentiate between the adoption differences between your hyperscale and enterprise customers and then kind of related to that.

Speaker 8: Related to that, is there an inorganic element to your growth now that you have over $20 billion of cash on the balance sheet? How are you planning to deploy that to accelerate your growth also?

Is there an inorganic element to your growth now that you have over $20 billion of cash on the balance sheet. How are you planning to deploy back to kind of accelerate your growth also.

Yes.

Speaker 6: The applications for AI is unquestionably growing and it's growing incredibly fast.

The applications the applications for <unk>.

<unk> is.

Unquestionably growing.

That's growing incredibly fast.

Speaker 6: Whether in enterprises and financial services, it could be fraud detection in cases of consumer pointing businesses, customer service, conversational AI, what people are calling chatbots.

Whether whether in.

Enterprises and financial services, it could be fraud detection.

In cases of.

Consumer <unk>.

Businesses.

Customer service conversational AI, where people are calling chat bots, but in the future every website, we'll have a chat bot.

Speaker 7: But in the future, every website will have a chatbot. Every phone number will have a chatbot, whether it's a human in the loop or not human in the loop, will have a chatbot. And so customer service will be heavily, heavily supported by artificial intelligence in the future.

Every phone number will have a chatbot.

Whether it's.

Human into loop or not humans loop.

A chatbot and so customer service will be heavily heavily supported by artificial intelligence in the future.

Speaker 1: almost every point of sales, I think, whether it's a fast foods or a quick service, businesses are going to have chatbots and AI-based customer service. Retail checkouts will be supported by AI agents. And so, all of this is made possible.

Almost every point of sales I think whether it's.

Alright.

SaaS foods or quick service.

Businesses are going to have a chat bots and.

AI based customer service retail checkout will be will be supported by AI.

Agents.

And so all of this is made possible.

Speaker 1: by a couple of breakthroughs. Computer vision, of course, because the agents, the AIs have to make eye contact and recognize your posture and such, recognize speech, understand the context and what is being spoken about, and have a reasonable conversation with people so that you could provide good customer service.

A couple of breakthroughs computer vision of course, because the agents the AI center.

Icon tank and recognize your your posture and such.

We recognize speech.

Understand the context.

And what is being spoken about and have a reasonable conversation with with people. So that you could provide good customer service.

Speaker 7: The ability to have human in the loop is one of the great things about an AI, much, much more so than a recording, which obviously is not intelligent, and therefore it's difficult to, if you will, call your manager or call somebody to provide services that the AI can't. And so the number of different applications that have been enabled

The ability to have human in the loop.

One of the great things about about AI.

Much much more so than a recording which obviously is not intelligent and therefore, it's difficult to if you will call your manager recall costs.

Call somebody too.

Provide provide services to the kit and so.

The number of different applications that have been enabled.

Speaker 7: by natural language understanding in customer service in just the last couple of years has grown tremendously.

By natural language understanding.

Customer service and just the last couple of years has grown tremendously.

Speaker 6: I think we remain early days in AI adoption. It's incredible how fast it's grown and how many different applications are now possible with AI. It pretty much says that almost all future software will be written.

I think.

We remain early early early days in our.

And adoption, it's incredible how fast has grown and how many different applications of impossible with AI, they're pretty much pretty much.

Says that on almost all future software will be written.

Speaker 6: With a, I, or by a, I. And when it's done, it will be.

With AI.

Or by AI.

And when it's done it will be NII.

Speaker 6: And we see it in all these different industries, and so I'm pretty certain we're in the early innings yet of AI, and this is going to be one of the largest industries of software that we've ever known.

And <unk>.

And we see it in all these different industries and so on.

I'm pretty certain we're the early innings, yet of AI and this is going to be one of the largest industries.

With that we have ever known.

Speaker 1: With respect to capital, as you know, we had just terminated our arm agreement. We have a regular capital strategy process.

With respect to with respect to capital.

As you know we are just readjust terminated our arm agreement.

We have a regular capital strategy process.

Speaker 7: and we'll go through that and we'll make the best judgment about how to use our capital in helping our growth and sustaining our growth and accelerating our growth and we'll have all of those sensible conversations during those capital allocation meetings. We're just delighted.

We'll go through that and we'll make the best judgment about how to user.

Our our capital.

And in helping our growth and sustaining our growth in.

Accelerating our growth.

We'll have all of those sensible conversations doing during those capital allocation needs.

We're just delighted to have so much capital.

Just to put it out there.

Speaker 1: And next we'll go to Erin Rakers with Wells Fargo.

And next we'll go to Aaron Rakers with Wells Fargo.

Speaker 5: Thanks, guys. This is Michael on behalf of Aaron. Can you guys talk about how the launch of the RTX 3050 is going so far, and maybe more broadly, your view of where we are in the Ampere product cycle on gaming? Thanks.

Thanks, guys. This is Michael on behalf of Darren can you guys talk about how the launch of the Rts 30, 50 is going so far and maybe more broadly your view of where we R&D and pure product cycle organic.

Speaker 6: Yeah, thanks, Michael. Let's see, we are TX is a is a. Unqualified home run RTX.

Yes, Thanks, Michael.

Let's see we <unk> as is the.

Unqualified homerun.

Our TX completely reinvented modern computer graphics.

Speaker 6: It brought forward ray tracing about a decade earlier than anybody thought possible.

It made it brought forward retracing about a decade earlier than anybody thought possible.

Speaker 6: The combination of RTX with artificial intelligence.

The combination of RPX with <unk>.

Artificial intelligence.

Speaker 7: which enabled this technology we call DLSS, is able to not only do a ton more computation using our shader processors, but also engage the powerful tensor core processors that we have in our GPUs to generate images, beautiful images.

Which enabled this technology, we call deal NSS.

<unk>.

Not only do a ton more computation using our shader processors.

But.

Also engaged the powerful tensor core processors that we have in our gpus to generate images beautiful images.

Speaker 6: RTX is being adopted by just about every game developer on the planet now. It's being adopted by just about every design tool on the planet now. And if not for RTX, Omniverse wouldn't be possible.

Our TX <unk> is being adopted by just about every game developer on the planet.

It's being adopted by just about every design tool on the planet now.

And if not for our TX omnivorous wouldn't be possible.

Speaker 1: we wouldn't be able to do physically based path tracing and simulate sensors like radars and lidars and ultrasonics and of course, cameras and simulate these cameras physically and still be able to deliver the type of performance that we deliver.

We wouldn't be able to do physically based path tracing.

And simulate sensors like radar and Lidar and ultrasonics and of course.

Cameras and senior rate these cameras physically and still be able to deliver the type of performance that we deliver and so <unk> was a game changer for the industry.

Speaker 7: And so RTX was a game changer for the industry. It reset modern computer graphics.

It reset modern computer graphics.

Speaker 6: and it was an enabler for us to build an entire new platform from called Omniverse.

And it was an enabler for us to build an entire new platform from colon universe.

Speaker 6: And we're about, we're about, I think, about a 3rd of the way through. Upgrading and install base that is growing.

We're about I think about a third of the way through.

Upgrading an installed base that is growing.

Speaker 6: You know that video games is now the world's largest gaming genre.

You know that video games is now the world's largest gaming genre.

Speaker 7: and steam over the last two years has grown by 50%.

Steve.

Over the last two years has grown by 50%.

Speaker 7: The number of concurrent players on Steam has grown tremendously and just the last couple of years, a brand new game store from Epic came on and it's already a multi hundred million dollar business. I think it's close to a billion dollars that they're doing incredibly well.

The number of concurrent players on steam has grown tremendously.

And just the last couple of years.

A brand new game store from epic came on and its already a multi hundred million dollar business I think it's close to $1 billion.

They are doing incredibly well.

Speaker 1: I'm so happy to see it. And so the overall gaming market is growing and it's growing quite nicely. But the thing that in addition to resetting computer graphics for our entire install base.

I'm, so happy to see it and so.

The overall gaming market is growing and it's growing nicely, but the thing that that in addition to.

Resetting computer graphics for our entire installed base.

Speaker 1: the growing of our installed base, because gaming is growing, there are a couple of other

Growing of our installed base because gaming is growing there are a couple of other.

Speaker 6: growth dynamics that are associated with G Force and RTX, that's really quite brand new. One of them is hybrid work. This is a permanent condition.

Growth dynamics that are associated with <unk> and <unk>, TX, that's really quite brand new one.

One of them.

As is <unk>.

Hybrid work this is a permanent condition.

Speaker 6: And we now are seeing across the board people who are designers and creators now have to set up essentially a new workstation or new home workstation design studio so that they could do their work at home. In addition,

And we now are seeing across the board people, who are who are designers and creators now have to set set up essentially a new workstation or new home workstation Dizzy.

Design studio.

So that they could they could do their work at home in addition.

Speaker 6: The creative economy, the digital economy, the creative economy is really, really doing fantastically because everything has to be done in 3D now. Print ads are done in 3D.

Alrighty.

Creative economy.

The digital economy is accretive economy is really really doing fantastically, because everything has to be done in <unk> print.

Print ads are done in three D.

So to the print is done in <unk>.

Speaker 1: Video is done in 3D and live video broadcast video

Video is done in three D and live video broadcast video the millions of Influencers now augment their.

Speaker 1: the millions of influencers now augment their broadcast with rich augmented reality and 3D graphics. And so, 3D graphics is now not just for video games and 3D content, it's actually used now for all forms of digital content creation.

Broadcast with rich augmented reality and three D graphics, and so three D graphics is now not just for <unk>.

Video games and three D content, its actually use now for all forms of digital content creation and so RPX has all of these different drivers working working behind it.

Speaker 1: And so RTX has all of these different drivers working behind it, and we're definitely in the early innings of RTX.

<unk>.

We're definitely in the early innings of Rts.

Speaker 7: Next, we'll go to Stacey Razgon with Bernstein Research.

Next we'll go to Stacy <unk> with Bernstein research.

Speaker 1: Hi, guys. Thanks for taking my question. So you said that the growth in the next quarter, it's about $450 million, give or take, driven by data center. Can you give us some feeling for how that growth is being driven by units versus pricing versus mix and how those drivers might differ between gaming and data center, if at all?

Hey, guys. Thanks for taking my question.

So you said that the growth in the next quarter, it's about $450 million give or take driven by data center can you give us some feeling for how that growth is being driven by units versus pricing versus mix and how those drivers might differ between gaming and datacenter if at all.

For correct.

Speaker 3: It's really early in the corner to determine, Stacey, our exact mix that we will have based on the unit and an AST across the board.

It's really early in the corner.

Determining stacey.

Our exact niche that we will have.

Based on the unit and ASP.

Speaker 3: Our overall growth of quarter over quarter going into Q1 will be driven by data center primarily.

Our overall growth.

Quarter over quarter going into Q1 will be driven by data center primarily.

Speaker 3: We will see a little bit of growth there in gaming. I think that's important to understand that even after key for the holiday. Moving into Q1, we'll still probably see growth here in gaming.

We'll see a little bit of growth there in gaming.

It's important.

To understand.

That even after Q4 and holiday moving into Q1 cluster probably kick off here in gaming.

Speaker 3: which is different in terms of what we've seen seasonally.

It's different in terms of what we've seen seasonally.

Speaker 3: And we'll probably have growth in automotive as well, sequentially between 4 and 1. there are still some areas that are supply constraint. We are working again to try and improve that for every quarter going. But that's how you should look at our 1 primarily from data.

We will probably have growth in automotive as well sequentially between.

There are still some areas that are supply constrained and we are working again to try and improve that for every quarter going forward.

That's how you should look at our.

For Q1, primarily from days.

Speaker 7: Next, we'll go to Harlan Sir with J.P. Morgan.

Next we'll go to Harlan sur with J P. Morgan.

Speaker 9: Good afternoon. Congratulations on the solid results and execution. You know, the Networking Connectivity Portfolio Edition has been a pretty solid for the NVIDIA team, especially in enabling scaling of your GPU systems, improving connectivity bottlenecks in yours and your customers' accelerated compute platforms.

Good afternoon, congratulations on the solid results and execution.

Networking connectivity portfolio addition has been a pretty solid for the Nvidia team, especially in.

And enabling scaling of your GPU systems, improving connectivity bottlenecks in yours, and your customers' accelerated compute platforms. So.

Speaker 9: So in a year where self-spending is growing 30%, you've got a strong networking upgrade cycle, which is good for your NIC products.

So in a year, where it spending is growing 30% you've got a strong networking upgrade cycle, which is good for your niche products and.

Speaker 9: and just continued overall good attach rates if the team can unlock more supply. Will the networking connectivity business grow in line or faster than the overall data center business this year? And then for Jensen, have you driven synergies between Mellanox's leadership and networking connectivity and, you know, for example, leveraging their capabilities for your internally developed NVLink connectivity and switching architectures?

And just continued overall good attach rates.

The team can unlock more supply.

Well the networking connectivity business grow in line or faster than the overall data center business. This year and then for Jonathan have you driven synergies between melon absolute leadership in networking connectivity.

For example, leveraging their capabilities for your internally developed NV linked connectivity and switching architectures.

Speaker 6: Yes, absolutely. If not for, if not for the work that we did so closely with melanoma.

Yes, absolutely if not for if not for the work that we did so closely with melanoma.

Speaker 1: The scalability of DGX and DGX SuperPi and the research supercomputer that was just installed at Meta would just not be possible.

The scalability of <unk> and VEGF Super Pine and the research supercomputer that was just installed a minute would just not be possible.

Speaker 1: The concepts of

Alright.

The concepts of.

Of.

Speaker 7: Overlapping networking and compute, moving computing into the fabric, into the network.

Overlapping networking and compute.

Moving moving some movie computing into the fabric into the network.

Speaker 7: The work that we're doing with synchronous and precision timing so that we could create omniverse computers that obey the laws of physics and space-time, these things are just simply not possible.

The work that we're doing with synchronous and precision timing so that we could create omnivorous computers that obey the laws of physics and space time.

These things are just simply not possible.

Speaker 7: the work that we're doing to bring cloud-native secure multi-tenancy to supercomputing wouldn't have been possible. The number of innovations that are countless. And so, I am so thrilled with the combination and so thrilled with the work that the Mellanox team are doing with accelerated roadmaps.

The work that we're doing to bring.

Cloud native secure multi tenancy to supercomputing wouldn't have been possible.

A number of innovations.

That are countless and so so I am so thrilled with with the combination.

So thrilled with the work that <unk> team are doing with accelerated roadmaps.

Speaker 7: as a result of the combination that we could leverage a much larger base of chip design. Bluefield's roadmap has been accelerated probably by about a year. The switch – the quantum switch and the spectrum switch, the SERTIs are absolutely world-class.

As a result of the combination that we could leverage.

A much larger base of chip design.

These fields roadmap has been accelerated probably by about a year.

Switch in the quantum switch in the spectrum switch the <unk> are absolutely world class.

Speaker 7: shared between Ethernet and InfiniBand and NVLink. Absolutely the best SERTIs in the world. And so the list of opportunities, or the list of combination benefits is really quite countless. And so I'm super thrilled with that.

Shared between between.

Ethernet and Infiniband in the link.

Absolutely the best series in the World and so that the list of the list of.

Opportunities are the list of combination benefits is really quite countless and so some super thrilled with that.

Speaker 1: With respect to networking growth, we should be growing, if we weren't supply constrained, we should be growing faster than overall CSP growth. And the reason for that, the reason

With respect to with respect to networking growth, we should be growing if we werent supply constrained, we should be growing faster than overall CSP growth and the reason for that.

The reason for that is twofold.

Speaker 1: The first is because the networking leadership position of Mellonox

First is as is.

Because the networking leadership position of Melanomas.

Speaker 6: Mellanox is highly heavyweight in the upper end of networking where the adoption of higher speed networks tends to move.

Mellow Knox's is highly hip.

Highly heavy weight in the in the.

Upper end of networking, where where the adoption of higher speed networks tends to move and so.

Speaker 7: And so, it's sensible that as new data centers are built, the first preference is to install it with higher-speed networking than last-generation networking. And non-on-axis networking technology is unambiguously world-class.

So it's sensible debt that as new data centers are built.

The first preference is to install it with higher speed networking than last generation networking and non Isis <unk>.

Networking technology is unambiguously world class.

Speaker 1: But the second reason is because the areas where the overall NVIDIA is strong has to do with the areas that are growing quite fast, which related to artificial intelligence or cloud AI and such. And so those different applications

The second reason is because the areas where.

The overall Nvidia is as strong.

It has to do with the areas that.

Our growing quite fast with reopened later to artificial intelligence or.

Cloud AI and such and so those different applications.

Speaker 7: are growing faster than the core, and so it would be sensible that we have the opportunity as we expand our supply base to continue to grow faster than CSPs overall.

Our growing faster than the core and so it would be sensible debt that we have the opportunity.

As we expand our supply base to continue to grow faster than Csp's overall.

Our next question will come from Matt Ramsey with Cowen.

Speaker 5: Yes, thank you very much. Good afternoon. I maybe wanted to expand on some of the things that you were just speaking about in your last answer with respect to the data center business.

Yes. Thank you very much good afternoon.

Jensen I, maybe wanted to expand on some of the things that you were just speaking about in your last answer with respect to the data center business.

Speaker 5: Not often, maybe if ever, that you have both x86 server vendors having new big platform upgrades in the same year, which will probably happen later this year. There's a lot going on there.

Not often maybe if ever that you have both X 86 server vendors, having new big platform upgrades in the same year, which will probably happen later this year, there's a lot going on there.

Speaker 5: DDR5s, PCIe5s, some CXL stuff. I wonder if you could talk a bit about your data center business broadly and what you feel might be memory and I.O. constrained currently that these systems might unlock for you, both in the cloud enterprise side, but also in the DGX business. Thanks.

DDR five pcie fives on CX all stopped.

I Wonder if you could talk a bit about your data center business broadly and what what you feel might be memory and Io constrained currently that these systems might unlock for you both in the cloud enterprise side, but also.

In the <unk> business. Thanks.

Yeah.

Yes, Thanks, Matt.

Speaker 1: There are several bottlenecks and let me just highlight some of them. One of the largest bottlenecks is

There are several bottlenecks and let me just let me just highlight some of them.

One of the largest bottlenecks.

Is is memory speed.

Speaker 1: And memory speed, that's the reason why we use the fastest memories in the world, HBM and GDDR, et cetera, et cetera. We are the largest consumers of the fastest memories in the world. And not even by, there's, you know, not, not with no close second.

And.

Memory speed. That's the reason why we use the fastest memories in the world HBM in GDR et cetera et cetera.

We are the largest consumers of the fastest memories in the world.

And not even buy theirs.

With no close second.

Speaker 7: That I that I know and so so our our consumption of fast memories is Is important to the work that we do the second is networking performance It is the reason why we have the fastest networks. It is also the reason why we have the most fastest networks in any system

That I know and so so our consumption of SaaS memories.

As important to the work that we did the second is networking performance. It is the reason why we have the fastest networks. It is also the reason why we have the most traction.

As networks in any system.

Speaker 7: We will have, for example, eight antenna band at the highest speeds connected right into a HGX or DGX server.

We will have.

For example, eight infiniband.

At the highest speeds connected right into our <unk> server and so.

Speaker 7: And so, the work that we do in GPU direct memory, RDMA, the work that we do with GPU direct storage, the work that we do with in-network computing and all reductions and moving data around inside a network is absolutely world-class.

Work that we do in <unk>.

<unk> direct memory, our DNA to work that we do with GPU direct storage.

The work that we do with in network computing and all.

Reductions in moving data around inside the network.

Absolutely World class.

Speaker 7: This is an area that we are just – I am just incredibly proud. All of that is so that we could be less bottlenecked by the CPU. Remember, inside our DGX system is one CPU and eight GPUs.

This is an area that we are just I I'm just incredibly proud.

All of that is so that we could be less bottleneck by the CPU remember inside inside our R. <unk> system is one CPU and <unk>.

Speaker 6: And the fundamental goal is to offload as much as we can and utilize the resources that we have as much as we can. This year, we expect a transition in PCIE Gen 4 to Gen 5. We are constrained on Gen 4, we'll be constrained on Gen 5, but we're used to that. And that's something that we're very good at.

And the fundamental goal is to.

Off load as much as we can and.

And.

Utilize the resources that we have as much as we can this year, we expect a transition and pcie Gen. Four to Gen. Five we are constrained on Gen. Four will be constrained on gen five.

But we're used to that.

It's something that we're very good at.

Speaker 7: And we'll continue to support Gen 4 well through next year, maybe well through the next couple of years in all of the install base of Gen 4 systems that are going to be all over the world. And we'll take advantage of Gen 5 as much as we can. But we have all kinds of new technologies and strategies.

We will continue to support Gen four well through next year.

Maybe you can walk through the next couple of years and all of the installed base of Gen. Four systems that are going to be all over the world and we will take advantage of gen. Five as much as we can but we have all kinds of new technologies and strategies.

Speaker 7: to improve the throughput of systems and avert the bottlenecks that are there.

To improve the throughput of systems and.

And avert the bottlenecks that are there.

Speaker 7: Our final question comes from the line of Raji Gill with Needham and Company. Yes, thanks and congrats on the good quarter and guide. Collin, a question on the gross margin and to Jensen's point about really creating a software business driven by omniverse drive and enterprise.

Our final question comes from the line of Rajiv Gill with Needham and company.

Yes, thanks, and congrats on the.

Good quarter and guide.

Colored.

A question on the gross margin and.

<unk> point about really creating a software business driven by omni versus drive in enterprise.

Speaker 9: When you're kind of contemplating your margin profile over the next couple of years.

When you're when you're kind of contemplating your margin profile over over the next couple of years.

Speaker 9: How do we think about that? Is it really going to be driven by an increasing mix of software as a percentage of your revenue over time? Is there more margin, you know, upside on the hardware side in terms of some of your segments?

How do we think about that is it really going to be driven by an increasing mix of software as a percentage of your revenue over time is there more margin upside on the on the hardware side in terms of some of your segments.

Speaker 9: The software opportunity is very exciting, but I'm just curious how that would translate to more of a longer-term margin profile.

Software opportunity is very exciting.

But I'm just curious how that would translate to two year kind of more of a longer term margin profile. Thank you.

Okay.

Speaker 3: Yes, thanks for the question on gross margin and the long-term. When we think about the long-term gross margin, we have incorporated software in many of our platforms within today, meaning our high-value platforms in data center, pro-biz, other parts of our business have really helped us with our gross margin to this point, and we've done a really solid job of managing that and the growth over the years.

Yes. Thanks for the question on gross margin and the long term when we think about the long term gross margin we have incorporated software in many of our platforms within.

And in our high value platforms and data center.

For the parts of our business has really helped us with our gross margin to this point, we've done a really solid job.

Managing that.

Speaker 3: I believe these businesses will continue to be a growing opportunity for us, but now also with the ability to package up software.

The growth over the years, but I believe these businesses will continue to be a growing opportunity for us but now also.

The ability to package offering.

Speaker 3: So, as that scales with our enterprise customers in the data center, and with our already procured deals, he's got a great opportunity.

So as that scales.

With our enterprise customers.

Data center and with our already procured.

<unk> auto.

Got it great opportunity.

Speaker 3: in the future and be more important for the market to come. So we're gonna work on that. We've set the stage for having been able to package it up to be able to sell it separately, to create the business models, to create the partners that are helping us sell it. But yes, we do believe this will be a driver in the long term.

Oh in the future.

Margin.

Okay.

We're going to work on that.

We've set the stage for.

Having been able to package it up and be able to solid separately too.

To create the business model to create to partners that are helping us sell that but yes. We do believe this will be a driver in the long term.

Speaker 7: Thank you. I'll now turn it back over to Jensen Wong for closing remarks.

Thank you I'll now turn it back over to Jensen Huang for closing remarks.

Speaker 1: Thanks, everyone. The tremendous demand for our computing platforms, NVIDIA RTX.

Thanks, everyone the tremendous.

This demand for our computing platforms Nvidia RPX.

Speaker 6: NVIDIA HPC, and NVIDIA AI drove a great quarter, capping a record year.

Nvidia HTC and Nvidia AI.

Drove a great quarter capping a record year.

Speaker 1: Our work propels advances in AI, digital biology, climate sciences, gaming, creative design to autonomous vehicles and robotics, and some of today's most

Our work propels advances in AI digital biology.

<unk> Sciences gaming creative design to autonomous vehicles and robotics.

Today's most impactful fields.

Speaker 6: our open computing platform optimized across the full stack.

Our open computing platform optimized across the full stack.

Speaker 6: Architected for data center scale is adopted by customers globally from cloud to core to edge and robotic.

Architected for datacenter scale is adopted by customers globally.

Cloud to cord.

The edge and robotics.

Speaker 6: I am proud of NVIDIA operations team as we made substantial strides in broadening our supply base to scale our company and better serve customer demand.

I am proud of Nvidia operations team as we made substantial strides in broadening our supply base to scale, our company and better serve customer demand.

Speaker 6: And this year, we introduced new software business models with NVIDIA AI Enterprise, NVIDIA Omniverse, and NVIDIA Drive.

And this year, we introduced new software business models with Nvidia AI enterprise.

Nvidia <unk> and Nvidia drive.

Speaker 6: NVIDIA Drive is a full-stack end-to-end platform that serves the industry with A-B chips.

Nvidia drive is a full stack and the <unk> platform.

Serves the industry with AB chips datacenter infrastructure for AI and stimulation MAPI NBA autonomous driving application service or data center infrastructure is used by just about anybody building avs robotics robo taxis shuttles and trucks.

Speaker 6: data center infrastructure for AI and simulation, mapping, and the Autonomous Driving Application Service.

Speaker 6: Our data center infrastructure is used by just about anybody, building AVs, robotics, robo-taxis, shuttles, and trucks. EV companies have selected our orange ship across the world.

Companies have selected our orange ship across the world.

Speaker 6: And our partnership with Mercedes Benz and Jaguar Land Rover has opened up a new software and services business model for millions of cars for the life of the fleet.

And our partnership with Mercedes Benz and Jaguar Land Rover has opened up a new software and services business.

Model for millions of cars for the life of the fleet.

And <unk> is a world simulation engine that connects simulated digital worlds to the physical world.

Diverse as a digital twin a simulation of the physical world. The system can be a building a factory or warehouse a car a fleet of cars, a robotics factory orchestrating a fleet of robots building cars that are themselves robotic <unk>.

Speaker 6: Today's internet is 2D and AI is in the cloud. The next phase of internet will be 3D, and AI will be connected to the physical world.

Today's internet is Judy and AI and the cloud.

The next phase of Internet will be <unk>, and AI will be connected to the physical world.

Speaker 6: We created Omniverse to enable the next wave of AI, where AI and robotics

We created <unk> to enable the next wave of AI.

Where AI and robotics touches our world.

Speaker 6: Omniverse can sound like science fiction, but there are real-world use cases today. Hundreds of companies are evaluating Omniverse.

Diverse can sound like science fiction, but there are real world use cases today.

Hundreds of companies are evaluating <unk>.

Speaker 6: We can't wait to share more of our progress at next month's GTC, learn about new chips, new.

We can't wait to share more of our progress at next month's GTC.

Learned about new chips.

New computing platforms.

Speaker 6: New AI and robotic breakthroughs and the new frontiers of omnibus.

New AI and robotic breakthroughs.

And the new frontiers of omnivores.

Speaker 6: Hear from the technologists of Deloitte, Epic Games, Mercedes Benz, Microsoft, Pfizer, Sony, Visa, Walt Disney, Zoom, and more.

Here from the technologies of Deloitte Epic games, Mercedes Benz, Microsoft Pfizer Sony Visa.

Walt Disney Zoom and more.

Speaker 6: This GTC promises to be our most exciting developers conference ever.

This GTC promises to be our most exciting developers conference ever.

We had quite a year yet.

Speaker 6: Yet nothing makes me more proud than the incredible people who have made NVIDIA one of the best companies to work for and the company where they do their lives for.

Nothing makes me more proud than the incredible people, who have made in video one of the best companies to work for as a company where they do their life's work.

Speaker 6: We look forward to updating you on progress next quarter. Thank you.

We look forward to updating you on our progress next quarter. Thank you.

Speaker 7: This concludes today's conference call. You may now disconnect.

This concludes today's conference call you may now disconnect.

[music].