NVIDIA (NVDA.US) CEO Jensen Huang recently revealed that he urged UK-based neocloud provider Nscale to "work around the clock" to overcome challenges in bringing some of its data centers online.
Nscale is an AI cloud computing provider backed by NVIDIA. Some of its data center sites have recently faced construction delays, equipment failures, and power supply bottlenecks, while its US$30 billion IPO valuation target has also drawn skepticism from investors.
"Come on guys, work hard, work around the clock," Huang recalled telling the company at a press conference on Thursday. "That's all I said." Nscale did not immediately respond to a request for comment.
With enthusiasm for the AI sector cooling, Huang's remarks were intended to shore up market confidence. These AI neocloud players—funded by NVIDIA, equipped with NVIDIA chips, and purpose-built for AI compute data centers—have suffered a string of major setbacks in recent weeks.
Australian compute firm Firmus Grid, also backed by NVIDIA, shelved a US$30 billion IPO planned for Australia, while South Korean player Elice saw a dismal stock performance after listing.
Huang nonetheless believes neocloud providers will eventually overcome their difficulties, because demand for AI compute remains strong. "I'm very confident they'll figure it out, and their solution starts with the fact that they have great customers, demand is very strong, and they just need working capital," Huang said at a press conference held during the GTC conference in Berlin.
Huang said neocloud providers are building some of the largest and most complex compute systems in the world, while also grappling with engineering, supply chain, and delivery challenges. In the past, an infrastructure company might take three years to build a data center. "But now, if you can't get it up and running in six months, everyone will come after you," he said.
Over the past week or so, Huang has been touring Europe, signing cooperation agreements with local companies and lobbying European political and business leaders on the safety and sustainability of AI. He remains optimistic about AI's prospects, but market sentiment has shifted: as financing costs rise, there is growing concern over whether the massive sums flowing into AI infrastructure will deliver returns.
Over the past two weeks, AI-related stocks have been hit hard, and the closely watched Philadelphia Semiconductor Index suffered its longest losing streak since 2008.
Huang and his executive team hold GTC conferences around the world, both to present the latest AI developments and to win business for the company's expanding product lineup. In Berlin, the company unveiled new data center equipment, software, and models, and announced partnerships with leading European companies.
Notable new equipment includes the DSX Pod, essentially a miniature data center for companies that want to get hardware online faster. With a single container, customers get the server hardware, cabling, and plumbing they need—already installed and tested. NVIDIA says it only needs to be plugged in and connected to other similar units.
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