Jensen Huang-led Nvidia Corporation (NASDAQ:NVDA) boasted about Tesla Inc.'s (NASDAQ:TSLA) expansion of its AI training cluster to 35,000 H100 GPUs, which led to a significant performance boost for the electric vehicle giant's latest autonomous driving software.
What Happened: On Wednesday, during Nvidia's first-quarter earnings call, the company's chief financial officer, Corlette Kress, spoke about the tech giant's role in Tesla's AI infrastructure expansion. According to Kress, the increased AI infrastructure reportedly contributed to the remarkable performance of Tesla's full self-driving (FSD) version 12.
She said, "We supported Tesla's expansion of their AI training cluster to 35,000 H100 GPUs." Adding, "Their use of Nvidia AI infrastructure paved the way for breakthrough performance of FSD version 12, their latest autonomous driving software based on vision."
"The next industrial revolution has begun," said Huang on the call. Adding, "Companies and countries are partnering with NVIDIA to shift the trillion-dollar installed base of traditional data centers to accelerated computing and build a new type of data center, AI factories, to produce a new commodity, artificial intelligence."
Why It Matters: Following Nvidia's remarkable quarterly performance, analysts like Dan Ives and Gene Munster expressed that this "party's just getting started."
The tech giant's remarkable surge was propelled by its data center segment, which experienced an extraordinary 427% growth in the most recent quarter, fueled by robust demand for its AI processors.
Nvidia also disclosed adjusted earnings per share (EPS) of $6.12, accompanied by $26 billion in revenue, showcasing rises of 461% and 262%, respectively, compared to the last year. Additionally, the company announced a 10-for-1 stock split and boosted its quarterly dividend by 150%.
In August 2023, Tesla deployed a 10,000-unit Nvidia H100 GPU cluster to expedite the training of its full self-driving technology. At the time, Tesla CEO Elon Musk said, "H100 is ~3X faster than A100 in our tests."
Last month, it was reported that Tesla plans to ramp up its AI development by installing 85,000 Nvidia H100 chips by the end of this year. These chips play a crucial role in Musk's AI endeavors, encompassing the creation of sophisticated robots such as Optimus Bot and Robotaxi, as well as a supercomputer dubbed Dojo.
NVDA Price Action: On Wednesday, Nvidia shares ended the regular session 0.46% lower at $949.50. However, the shares soared 6.06% in the after-hours trading at $1,007.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.