Nvidia's Huang urges European industries to adopt AI, unveils DSX pod data centre
In short
Nvidia CEO Jensen Huang told the GTC conference in Berlin on 21 October (local time) that all end industries in Europe must adopt AI. Nvidia unveiled a pre-built small data centre called DSX pod and announced supply-chain expansion with six partners, as investor scepticism over AI spending weighed on chip shares.
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Nvidia CEO Jensen Huang urged European industry to adopt artificial intelligence quickly and voiced optimism about AI infrastructure investment on 21 October (local time), Yonhap reported, citing Bloomberg and other reports. Speaking at the annual developer event GTC in Berlin, Huang said all end industries must adopt AI if Europe is to benefit and build a real AI ecosystem and AI economy, citing automotive, finance and healthcare as examples. "All of these industries must become AI companies," he said. [ 1 , 2 ]
Huang said Nvidia invested about $10 billion in Europe over the past year and that its partnerships in Europe have exceeded 12,000 since its founding. [ 1 , 2 ]
He also said building a 1 GW AI factory, meaning a data centre, costs about $50 billion. Assuming such a facility produces $40 billion in annual revenue, he said, even a three-month delay in construction would mean $10 billion of revenue missed. [ 1 , 2 ]
Nvidia unveiled the DSX pod the same day, a small data centre in which servers and cooling equipment are installed in a container in advance and tested. Nvidia said this shortens on-site construction from six months to 14 days, and that it suits smaller deployments below 1 GW. Electronic Times described DSX as a full-stack reference architecture in which computing, networking, storage, software, power and cooling systems are co-designed as one system, optimised from design through construction and operation. [ 1 , 2 ]
Nvidia also announced plans to ease AI chip supply bottlenecks by expanding production capacity with six substrate, packaging and testing partners, including Samsung Electro-Mechanics. Ibiden, Samsung Electro-Mechanics and Unimicron will help secure substrates, and Amkor Technology will quadruple its chip packaging supply by the end of 2028. Nvidia will double its chip testing capacity in 2027 compared with 2026, with expansion in the US, Taiwan and Singapore. [ 1 , 2 ]
Yonhap said Huang's European tour came as investor scepticism over the large sums going into AI infrastructure grew and AI and chip shares were hit over the past two weeks. The Philadelphia Semiconductor Index recorded its longest consecutive decline since 2008. Electronic Times likewise said the remarks came amid spreading market doubts about returns on AI infrastructure investment. [ 1 , 2 ]
According to Yonhap, the speech was briefly interrupted by Greenpeace protesters, who asked about reports that Nvidia chips had been used in Russian drones and were then escorted out by security. [ 1 ]
Why it matters
The remarks came as, per Yonhap and Electronic Times, market doubts about returns on AI infrastructure spending were growing and the Philadelphia Semiconductor Index posted its longest losing streak since 2008. Nvidia's supply-chain plan names Samsung Electro-Mechanics among its partners for substrates.
Key facts
- Huang said at the GTC conference in Berlin that all end industries, including automotive, finance and healthcare, must adopt AI for Europe to build a real AI ecosystem and economy. [ 1 , 2 ]
- Huang said Nvidia invested about $10 billion in Europe over the past year and has more than 12,000 partnerships in Europe since its founding. [ 1 , 2 ]
- Huang said a 1 GW AI factory (data centre) costs about $50 billion to build; assuming $40 billion in annual revenue, a three-month delay would forgo $10 billion in revenue. [ 1 , 2 ]
- Nvidia unveiled the DSX pod, a small data centre with servers and cooling equipment pre-installed in a container and tested; Nvidia said on-site build time falls from six months to 14 days. [ 1 , 2 ]
- Nvidia is expanding capacity with six substrate, packaging and testing partners; Amkor Technology will quadruple chip packaging supply by the end of 2028. [ 1 , 2 ]
- Nvidia will double its chip testing capacity in 2027 compared with 2026, with expansion in the US, Taiwan and Singapore. [ 1 , 2 ]
Confirmed by several sources
- Huang spoke at the annual developer event GTC in Berlin on 21 October (local time) and urged European industry to adopt AI quickly. [ 1 , 2 ]
- Nvidia unveiled the DSX pod and said it cuts on-site build time from six months to 14 days and suits deployments below 1 GW. [ 1 , 2 ]
- Ibiden, Samsung Electro-Mechanics and Unimicron will help secure substrates, and Amkor Technology will quadruple packaging supply by the end of 2028. [ 1 , 2 ]
- The Philadelphia Semiconductor Index recorded its longest consecutive decline since 2008. [ 1 , 2 ]
Still unclear
- Huang's speech was briefly interrupted by Greenpeace protesters who asked about reports that Nvidia chips were used in Russian drones before being escorted out by security. Only Yonhap mentions this, and the documents give no detail on the reports about the chips.
- Huang's figures on investment, partnerships and AI factory costs and revenue are his own statements. The documents give no independent verification of these figures.