This is Why Nvidia’s CEO Says Metaverse Could Save Companies Billions of Dollars

Nvidia CEO Jensen Huang recently made comments to CNBC, saying that the metaverse could save companies billions of dollars in the real world.

In a “Mad Money” interview with Jim Cramer on Friday, Huang said that’s why companies are willing to invest in the creation of virtual reality universes.

“We waste a whole bunch of things to overcompensate for the fact that we don’t simulate,” he explained.

According to Huang, companies are investing money into the creation of the so-called metaverse because it may ultimately save them significant chunks of change in the real world.

In the interview, Huang painted a vision of connected, virtual reality universes that go beyond facilitating recreation and commerce. Rather, Huang said he believes businesses can lean on the metaverse to reduce wastefulness and increase operational efficiency.

“We waste a whole bunch of things to overcompensate for the fact that we don’t simulate. We want to simulate all factories in metaverses, in this omniverse. We want to simulate plants in omniverse. We want to simulate the world’s power grids in the omniverse,” Huang said.

“By doing that, we could decrease the amount of waste, and that’s the reason why the economics are so good for companies,” he continued. “They’re willing to invest a small amount of money to buy into this artificial intelligence capability but what they save is hopefully hundreds and hundreds and hundreds of billions of dollars.”

Nvidia recently reported better-than-expected earnings and revenue for its third quarter.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.