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Jensen Huang interview – 'the foundations of gaming are just fine, just fantastic'

This week, Nvidia reported earnings and revenues that were down compared to a year ago. The collapse of cryptocurrency mining.

Nvidia's Turing architecture in its RTX graphics cards, says Jensen Huang, CEO of Nvidia, said: "What are you waiting for?" in analyst call this week. But the artificial intelligence chip market has a slowdown in hyperscale deployments in data centers.

We caught up with Huang for a few minutes on Thursday to talk about the state of the gaming market.

Here's an edited transcript of our interview.

Nvidia CEO Jensen Huang shows off the Nvidia GeForce RTX 2080 Ti at Gamescom 2018.

Above: Nvidia CEO Jensen Huang shows off the Nvidia GeForce RTX 2080 Ti at Gamescom 2018.

Image Credit: Nvidia

GamesBeat: It seems like it's in some ways, it's not one thing, like the crypto worries, it's another, with the hyperscale break. How do you look at that?

Jensen Huang: After the last Q4 and Q1, I'm delighted to return to growth. The hyperscale break is across the board. Everybody is experiencing it. But I do not think it's going to last. It's just that in Q2, which is our guidance, we have less visibility than we like. Overall, there's no question about that cloud computing is going to keep on investing. People are going to use more and more AI. Acceleration is going to be the path forward for computing. Thesis fundamental trends, I completely believe in them.

The pause, because of the last Q4 or so, because most hyperscalers took on a bit more capacity, how long does it take to burn out a quarter's worth of capacity? Not very long. I just think it's a matter of time.

See the realistic reflection on the side of the car in Battlefield V with Nvidia RTX.

Above: The Battlefield V with Nvidia RTX.

Image Credit: Nvidia

GamesBeat: It looks like a lot of things are happening in gaming right now. You have been transitions on, like the PlayStation 5 being contemplated. The Switch is going strong. The PC market is going strong. You said that China is going strong as well.

Huang: It's probably always going to happen. It was just better to Q4 and Q1, because we had a little more inventory in the channel. But I think the foundations of gaming are just fine, just fantastic. You know that. I'm super excited that raytracing is now going to be the standard for next-generation gaming. Microsoft DXR, Unity Engine, Frostbite at EA, all of the engines are jumping on raytracing. We're off to the next generation. You name it. Gaming is just vibrant.

GamesBeat: Does the possibility of trading with China count among things to be concerned about?

Huang: Wars are never good. But the important thing with respect to the tariff is that the vast majority of our manufacturing, as you know, is done outside that region. It's unaffected. From our perspective there's relatively little direct impact. But hopefully the people negotiating want to find a solution to the dispute and we'll go back to growing businesses in Asia.

I appreciate you about the break. We sea to an impression that the hyperscale break is going to last forever, but it's not. It's going to pass. For Q2 it provided a bit more uncertainty, and so we guided with that in mind.

GamesBeat: I'm starting to hear more stories about AI helping games. Do you see quite a few examples of that yourself?

Huang: We do. We're going to use AI for, of course, terrain generation. We'll use AI for animation, character animation. We'll use AI for environment animation – clouds, water, leaves, fire, explosions. We are going to use AI for natural language understanding and speech recognition, conversing with our digital avatars. We'll use AI to enhance the image, using technology like DLSS. We are going to use. That's the reason we have a tensor core in our computer.

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