NVIDIA CTO believes artificial intelligence is better than cryptocurrencies

NVIDIA Chief Technology Officer Michael Kagan has expressed skepticism about cryptocurrencies and their value to society. Kagan shared his point of view in a recent interview with The Guardian.

According to NVIDIA’s STO, artificial intelligence-based applications such as ChatGPT chatbot are more useful than cryptocurrency mining. He explained how ChatGPT makes life easier for users by instructing AI to perform a number of tasks.

The Guardian journalists drew attention to NVIDIA’s recent success in the AI market. Tens of thousands of AI-oriented NVIDIA graphics cards were sold to Microsoft and Amazon to develop their AI-based cloud computing services. NVIDIA CEO Jensen Huang called the company the «engine of artificial intelligence» at the annual NVIDIA conference.

Previously, NVIDIA made large profits due to the mining boom. However, in 2021, the company released software that limits the ability of its graphics cards to mine Ethereum. In this way, NVIDIA prioritized its customers, among whom AI researchers and gamers are in the first place. According to The Guardian, Kagan continues to support this decision, citing the minimal value of using CPU power for cryptocurrency mining.

By focusing on AI, NVIDIA has benefited from the growing interest in artificial intelligence this year, with the company’s shares up 63% or approximately $ 219 billion since the beginning of this year. NVIDIA dominates the market for graphics chips designed for the complex computing tasks required for AI applications. NVIDIA’s fourth-quarter results exceeded all expectations, with more than 20 analysts confident in continued growth and Goldman Sachs recommending NVIDIA shares as a buy.