The trend is for AI costs to fall with an increase in models, says Nvidia director

The cost of mechanisms related to artificial intelligence (AI) is at high levels because demand is high, but the tendency is for values ​​to fall as competition from companies offering their language models intensifies. This is the opinion of the director of Nvidia’s enterprise division for Latin America, Marcio Aguiar, who gave a press conference during the Web Summit event, in Rio.

“Obviously, the tendency is for these costs to fall, with the increase in language models, the competition that we have nowadays with several companies offering their language models”, he stated. “Now it’s really high because the search is so big. Everyone is starting to use AI.”

Cost is a concern for many companies, with questions such as the amounts to invest, the return and how to measure results, he stressed. To provide alternatives, Nvidia has a platform that allows companies to train their language models on the machines themselves, he explained.

According to the executive, the development of the AI ​​segment is “just beginning”. “Every two or three months a technique emerges that adds to the previous ones”, he said. According to him, the company now sells ten times more than it did five years ago. “We are living in a fantastic moment, but we have our feet on the ground.”

Asked about Nvidia’s bet on PCs (personal computers), the executive highlighted that the demand for processing on GPUs (Graphic Processing Units, chips specialized in carrying out many calculations simultaneously) in data centers is above supply capacity. “So it’s not even a bet, it’s simply an evolution, mainly of language models”, he said, also citing the evolution of hardware technologies.

“We are able to increasingly condense our processors and start offering this to meet a demand that does not necessarily always need to run in the cloud. It is simply an evolution of artificial intelligence”, he said.

Regarding sales restrictions to China – Nvidia has faced restrictions from the US to sell its most advanced AI chips to China since 2022 -, the executive stated that the company understands and respects the rules imposed not only for Donald Trump, but also during the administration of former president Joe Biden. However, he said it is difficult to track whether there are customers who are not following the rules.

“At the end of 2024, we were taken by surprise, where they imposed on us the rule that we could not sell more to China. Then there was a back and forth of negotiations with the government, they authorized us to sell GPUs that would not be the best”, he said, indicating that the company wants to sell to the Asian country again.

“This bothered us because we want to provide everyone with the best in terms of technology. It doesn’t make sense to sell something that I know is not so good for this market, which for us is super important. But at this moment, we can’t help but follow, you know, these rules that were imposed on us. They have been followed to the letter”, he concluded.