Despite the fact that the company’s powerful processors sell in large amounts to the sector, Nvidia, a well-known American chip giant, has declared that cryptocurrencies do not “bring anything useful for society.”
According to the company’s chief technology officer, Michael Kagan, alternative uses of computing power, such as the artificial intelligence chatbot ChatGPT, are more valuable than mining cryptocurrency.
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Reason Behind the Controversial Remark
For quite some time, Nvidia has been embracing the crypto community. It is worth remembering that Nvidia produced software in 2021 that artificially restricted the ability of its graphics cards to be utilized to mine the popular Ethereum cryptocurrency. This operation was launched with the intention of ensuring that supply flowed to its favored consumers, which include AI researchers and gamers.
Kagan went on to defend their remark on the merits of crypto mining, claiming that it was justified by the limited utility of employing computing power to mine bitcoins. He went on to say that all of the “crypto stuff” going on required parallel processing, and Nvidia was believed to be the “greatest,” which is why people chose to program it for this reason.
AI Versus Crypto
The chief technology officer even mentioned that the crypto community acquired a lot of items before it crashed. He claimed that the reason for the collapse was that it brought nothing helpful to society. But then he mentioned AI, and he went on to assert that with ChatGPT, anyone can now develop their own machine or program just by instructing it what to do, and it will.
Yet, cryptocurrency was perceived as being more similar to high-frequency trading, a sector that had generated substantial business for Mellanox, a startup that Kagan had created before it was acquired by Nvidia. He claimed that they were essentially traders, with Wall Street buyers purchasing their goods to avoid waiting for a few nanoseconds on the wire.
To save a few nanoseconds between their data center and the stock market, he even claimed that certain banks were supposedly doing ridiculous things like pulling the fibers under the Hudson strait to make them slightly shorter. Kagan continued by saying that he had never ‘believed’ that cryptocurrency might advance humankind.
Then he continued his previous argument that although individuals buy the firm’s products and the company sells them to them, they do not tell the corporation to support whatever it is that they are doing.