Nvidia raked in more than $19 billion in net income during the last quarter, the company reported on Wednesday, but that did little to assure investors that its rapid growth would continue. On its earnings call, analysts prodded CEO Jensen Huang about how Nvidia would fare if tech companies start using new methods to improve their AI models. The method that underpins OpenAI's o1 model, or 'test-time scaling,' came up quite a lot. It's the idea that AI models will give better answers if you give them more time and computing power to 'think' through questions. Specifically, it adds more compute to the AI inference phase, which is everything that happens after a user hits enter on their prompt. Huang indicated that o1, and test-time scaling more broadly, could play a larger role in Nvidia's business moving forward, calling it 'one of the most exciting developments' and 'a new scaling law.' Huang did his best to ensure investors that Nvidia is well-positioned for the change. This is a...
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