NVIDIA is looking to start reaping its rewards with the AI boom it has begun in the past years with its newest AI chips, Blackwell.
In an interview on CNBC's "Squawk on the Street," NVIDIA CEO Jensen Huang said the company is planning to sell its latest AI chips between $30,000 and $40,000, its most expensive price for a single unit yet.
Blackwell's predecessor, the H100, is estimated to cost between $25,000 and $40,000. Before that, the highest-priced NVIDIA AI chips, the A100, are around $10,000.
According to Huang, the high price tag is because of the research and development costs that went up by around $10 billion.
This is in addition to the $1 trillion-worth data centers NVIDIA has installed around the world to meet the increasing demand for its technology, The Wall Street Journal reported.
The chip manufacturer estimated that its spending has increased $250 billion from last year, or 20% each year.
NVIDIA Predicts Higher Profits Following Blackwell, H100 Release
Despite its sales in China being hampered over the past years, NVIDIA has been racking up profits following the AI boom.
The company just recently released its financial report for last year's fourth quarter, showing its revenue went by 126% to $60.9 billion and its shares up by $277 billion.
NVIDIA has also increased its forecast revenue to $24 billion in preparation for the surge in purchases of its top AI chips, particularly from other AI firms like Microsoft, Google, and OpenAI.
The company expects to ship out 2 million H100 units in the coming months, up from the 1.5 million units sold last year
NVIDIA is also looking to profit from three new Blackwell AI accelerators: the B100, B200, and GB200.
Related Article : NVIDIA Revenues Soar Beyond Expectations Amid AI Chip Boom
NVIDIA Prepares for Supply Constraint Amid Rising Demands
Amid the surge for its AI chips, NVIDIA is looking to better prepare for supply constraints to prevent the distribution issues that happened during the pandemic when AI began gaining attention.
NVIDIA CFO Colette Kress assured customers that the company "can meet some of the demand that's put in front of us."
