Jensen Huang Just Signed 7 Japanese Industrial Giants Into Nvidia's Physical AI Coalition. Here's Why $1 Trillion in Confirmed Demand Should Matter to Investors.
Nvidia is positioning itself as a core technology provider for Japan's physical AI build-out.
Overview
When Jensen Huang flew to Tokyo last month and signed seven Japanese industrial giants into Nvidia's (NASDAQ: NVDA) new physical AI coalition, he was locking in a massive, long-lived stream of demand for Nvidia's chips and software, and that is something I think investors should really pay attention to.
Nvidia CEO Jensen Huang. Image source: Nvidia.
"Physical AI" refers to AI that controls robots, factory lines, and machines in the real world instead of just chatbots on a screen. In mid-July, Nvidia announced that companies like Fujitsu, FANUC, Yaskawa Electric, and Kawasaki Heavy Industries, along with Hitachi, NEC, SoftBank, Sony, and Kubota, intend to build on its Cosmos, Isaac, Metropolis, and Jetson platforms as part of a "Cosmos Coalition" focused on physical AI. Put simply, these are some of Japan's biggest names in robotics, manufacturing, and communications agreeing to standardize on Nvidia's stack as they build the brains for next-generation industrial automation.
Details
Source
Originally published at www.fool.com.