NVIDIA Emerges as the Biggest Winner in the AIGC Wave Thanks to Its 'AI Selling Shovels' Role

At the 51st SIGGRAPH graphics conference in Denver, Nvidia's founder and CEO Jensen Huang and Meta's founder and CEO Mark Zuckerberg engaged in a rare one-on-one conversation. Their dialogue highlighted a shared vision of an optimistic future shaped by artificial intelligence. Their motivations are clear: Nvidia has emerged as a major winner in the current wave of AI-generated content (AIGC), while Meta, having placed its bets on the metaverse, seeks to demonstrate its capability to compete in the realm of generative AI.

Despite their efforts, public perception of generative AI remains polarized. On one side, the latest announcement of a voice version of GPT-4 has enthusiasts excited, reminiscent of the emotional AI depicted in the film "Her." On the other hand, the initial awe surrounding ChatGPT has gradually diminished, and while innovations like Sora have made headlines, they have yet to achieve significant accessibility.

The fluctuations in the stock market reflect this uncertainty. Over the past two weeks, U.S. tech stocks experienced notable volatility, with the combined market value of the "Tech Seven"—Amazon, Nvidia, Microsoft, Apple, Meta, Alphabet, and Tesla—plummeting by approximately $1.52 trillion, marking the largest drop on record. While there is little positive news, challenges abound. The high costs of computing power and ongoing expenditures further cloud the future. Analysts on Wall Street and Ivy League professors alike have begun questioning whether generative AI truly represents a disruptive innovation. The answer remains elusive.

Even the rapidly evolving Chinese market faces challenges in applying technologies like autonomous driving, grappling with maturity and ethical concerns. Since the AI revolution was sparked by ChatGPT in 2023, the industry seems to be at a crossroads, struggling to articulate a compelling business narrative despite offering cutting-edge products.

History shows that the development of groundbreaking technologies often involves setbacks. The "AI Four" that dominated discussions seven or eight years ago are now also searching for direction. For innovative technologies to become transformative products, they must pass through various stages, with identifying application scenarios and establishing a sustainable business ecosystem being pivotal.

Currently, even OpenAI, at the forefront of the current AI wave with over $10 billion in investment from Microsoft, has yet to achieve profitability. Progress in technology and innovation does not adhere to human timelines, as OpenAI scientist Kenneth Stanley notes—greatness cannot be dictated by plans. If this moment does not mark AI's "iPhone moment," it might not be a setback. Instead, it could raise the bar for human creativity and innovation.

What the field of artificial intelligence urgently needs now is an appealing business narrative. As Robert Shiller discusses in his book “Narrative Economics,” storytelling has become a crucial mechanism for economic change and a key predictor of trends. Narratives around market downturns, future economic growth, technological displacement, and investment sentiment significantly affect consumers, entrepreneurs, investors, and policymakers.

I firmly believe that the spirit of open innovation that underpins generative AI will prove timeless. A commitment to open-source principles will ultimately guide humanity toward breakthroughs in the AI revolution. However, this progress may require a greater measure of patience and confidence before it materializes.