How Nvidia CEO Jensen Huang is transforming gaming industry amidst AI boom

Artificial intelligence (AI) is still an emerging technology, but its impact across industries is already wide-reaching.

Aerospace giant Lockheed Martin, for instance, taps into digital twins to identify, monitor, and repair anomalies in flight trainers.

With the help of AI algorithms for data collection and processing, this endeavor ultimately enhances the Orlando operations’ production of high-fidelity flight simulators and overall client satisfaction.

Successful AI applications can also be observed in the gaming industry, from efficient video game creation and development to immersive gaming experiences.

Besides gaming software companies themselves, leading the way in the AI boom is Nvidia.

The Santa Clara, Calfi.-based firm manufactures the graphic processing units (GPUs) used in computers and video game consoles.

Nvidia’s AI gaming chips make up 18% of total revenue and generate $2.49 billion in sales, according to its most recent earnings report.

Behind the chipmaker’s rise in the gaming industry is founder, president, and CEO Jensen Huang.

His leadership lends itself relevant to businesses looking to leverage the potential of AI in gaming.

Read on to learn more about his business model and strategy that aligns with the AI boom.

Developing generative AI

While Huang’s master’s degree in electrical engineering from Stanford explains why the company excels in developing the chips that power AI, it is his long-term investments in research and development that enabled Nvidia to release the newest generative AI technologies poised to transform and elevate video game creation.

One of these is Ace.

The AI technology allows non-playable characters (NPCs) to be smart by directly interacting with human players.

Meanwhile, Neuralangelo can transform 2D assets into detailed and textured 3D videos.

Nvidia also invested $25 million in the University of Florida to bolster research efforts in AI supercomputers.

The move demonstrated the value of bridging the gap between business and academia for continuous innovation.

Partnering with gaming companies

Not only does Huang-led Nvidia collaborate with educational institutions on AI research.

The company is also known for a series of strategic partnerships with gaming companies.

Huang’s vision to bring 3D graphics to the gaming market was first realized upon GeForce’s release, with Nvidia securing a deal to develop graphics hardware for Microsoft’s Xbox console.

After a series of acquisitions, Nvidia would move on to design a graphics processor for Sony’s PlayStation 3.

The move cemented its place in the gaming industry throughout the years by facilitating AI adoption.

Meeting the need for upskilling

Digital transformation through emerging technologies like AI also highlights the importance of upskilling your capabilities.

This is especially true in relevant areas like data science to master machine learning and software engineering to build applications that support AI innovations.

Unlocking and honing such skills can increase employability in any industry.

However, it’s especially crucial in the gaming industry since it can make production more efficient and improve overall gaming experience.

In this light, Nvidia has a training program for companies and organizations to ensure they can adopt its AI technologies effectively and efficiently.

Through these executive, developer, and IT training courses, professionals in the gaming industry are equipped to integrate AI in creating interactive worlds that meet gamers’ expectations.

Prioritizing DEI initiatives

Huang recognizes the need for diversity, equity, and inclusion (DEI) in the gaming industry for greater representation in AI technologies.

Thus, Nvidia prioritizes DEI in its workforce by having dedicated recruiters assist women and members of minority groups throughout the talent pipeline.

The company also boasts its strong compensation and promotion parity. Within the company, women are promoted at an equal rate (13.9%) to men (14.2%).

Overall, businesses and companies that want to follow Nvidia’s footsteps in revolutionizing AI for gaming must know how to invest in research and development, partnerships, upskilling, and DEI.

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