Jensen Huang says he’s found a ‘brand new’ $200B market for Nvidia

But now, with the Vera CPU, which is sold alone and bundled with its Rubin GPU, Huang believes he’s unlocked “a major new growth driver” for his company because Vera is, he believes, “the world’s first CPU, purpose-built for agentic AI,” Huang said on the call.

“Vera opens a brand new $200 billion TAM for Nvidia, a market we have never addressed before, and every major hyperscaler and system maker is partnering with us to deploy it. The world is rebuilding computing for agentic AI and robotic physical AI. Nvidia sits at the center of these transitions,” hype man Huang said.

He explained that while the “thinking” part of an AI model uses GPUs, agents mostly run on CPUs. They use CPUs to do their assigned tasks and will, he predicts, run their own form of CPU-driven PCs.

Vera is for agents because it’s specifically designed to process tokens as fast as possible. This is opposed to classic cloud architecture CPUs designed with “cores,” or the ability to run multiple instances of apps as fast as possible.

That sounds logical, but with the major cloud providers as well as startups pursuing AI chip development, what makes him think that Nvidia will be the go-to source for agentic CPUs?

Because, Huang says, Nvidia has already sold $20 billion worth of standalone Vera CPUs this year and we’re only at the beginning.

“The world has a billion users, human users. My sense is that the world is going to have billions of agents, not today. I mean, we’re going to grow into it, but we’ll have billions of agents, and those billions of agents will all use tools. And those tools are going to be like PCs, just like us humans using using PCs today,” he said.

“We’re going to need a lot more CPUs,” he explained.