Nvidia reported earnings on Wednesday, and as expected, the numbers were good. Really good. The company gets more than 91% of its sales from its data center unit, which generated revenue of $193,737 billion, up 68% year-over-year.
“We have now scaled our data center business by nearly 13x since the emergence of ChatGPT in fiscal 2023,” Nvidia CFO Colette Kress said in the company’s earnings call on Wednesday.
While very impressive, the number is not all that surprising given that global AI spending is expected to reach $2.5 trillion this year, and Nvidia’s largest customers, the major AI hyperscalers Amazon, Alphabet, Meta, and Microsoft, all reported record capex figures earlier this month.
The hyperscalers also made eyewatering financial commitments for 2026 totaling nearly $700 billion, which came to the dismay of many investors who have been growing wary of AI spending.
Earlier this month, Evercore analysts warned that the huge capex could turn the hyperscalers’ cash flow negative.
And despite the record after record multibillion-dollar commitment made to scale AI infrastructure and grow the technology’s adoption across the American economy, the results are yet to fully materialize. A Goldman Sachs analyst recently said that AI contributed “basically zero” to U.S. GDP in 2025.
Nvidia CEO Jensen Huang spent most of his time in the investor call trying to justify that capex growth.
“I am confident in their cash flow growing, and the reason for that is very simple: we have now seen the inflection of agentic AI and the usefulness of agents across the world in enterprises everywhere,” Huang said.
AI adoption by enterprises beyond the tech world, and whether these companies actually see real productivity gains and revenue returns from AI integration, is really important to Nvidia, because that’s a major thing that the AI industry is currently lacking to quell worries over an AI bubble.
A recent survey found that despite 70% of firms employing AI, over 80% reported no impact on employment or productivity.
Last week, OpenAI COO Brad Lightcap told TechCrunch that his company had “not really seen enterprise AI penetrate enterprise business process.”
Some experts believe that Anthropic’s Claude Cowork unveiled earlier this month is going to be a turning point in AI’s penetration into the workforce, so much so that they believe it will lead to a mass extinction-level event for software companies, and maybe even white-collar work. Huang gave a special shout-out to Claude Cowork in the call as well.
Huang also had a technical explanation to justify the capex commitments.
“In this new world of AI, compute equals revenues,” Huang said, a phrase that he repeated many times throughout the call. Huang argues that tokens, aka the chunks of data that AI models process, are the most important part of a new AI economy. The more tokens a model uses, the more computing power and time it requires. So, as models are getting more complex, the demand for computing is also going up “exponentially,” Huang said. He argued that the capex commitments will go towards building this compute capacity, which will thus power higher-level models and translate to revenue.
“The amount of token generation capability that the world needs is a lot, more than $700 billion, and I’m fairly confident that we’re going to continue to generate tokens…fundamentally because every single company depends on software, every software will depend on AI, and so every company will produce tokens,” Huang said. “If the new software requires tokens to be generated and the tokens are monetized, then it stands to reason that their data center build-out directly drives their revenues.”
Huang’s justifications may not have immediately convinced the market. Even though shares rose at first in response to the report, after the call, gains eventually pulled back to less than 1%. That’s despite revenue that exceeded market expectations.
OpenAI and China are still blind spots
Throughout the call, Huang also tried to address rumors of a falling out with OpenAI, first spurred after a $100 billion Nvidia investment announced back in September 2025 reportedly failed to progress beyond the early stages after months. Then, two back-to-back reports claimed that Huang was privately criticizing OpenAI’s business approach while OpenAI was unhappy with the inference speed of Nvidia’s chips.
In the call on Wednesday, Huang repeatedly praised the AI giant’s offerings, but revealed that the investment was still not finalized.
“We continue to work with OpenAI toward a partnership agreement, and believe we are close,” Huang said on the call. The filing also refuses to give any assurance that “a transaction will be completed.”
Another piece of uncertainty weighing on Nvidia is China. The company shared that, as of this month, the Trump administration has finally allowed it to start shipping small amounts of its H200 chips to China, where it once held 95% of the market share before Trump first banned the chipmaker’s sales to China, sparking a saga of dizzying trade tit-for-tat between the two global superpowers. But executives still don’t know if the imports will be allowed in, and are not factoring it into the revenue they expect this year.
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#Compute #Equals #Revenues #Nvidia #Jensen #Huangs #Catchphrase #True
![Scientists Say Some Black Holes Are Born From Other Black Holes
Since LIGO’s Nobel-winning discovery of gravitational waves—ripples in spacetime—the U.S.-based detector has been picking up on hundreds of signals from black hole mergers. And, after a decade of studying gravitational waves, researchers believe a significant fraction of black holes may come from cosmic chain reactions. A recent paper published in Physical Review Letters describes an analysis of 155 pairs of binary black holes, identified by LIGO and its sisters, Virgo and KAGRA, in Italy and Japan, respectively. According to the study, about 14% of merging black holes may be what’s called “second-generation black holes,” or black holes that form from previous mergers of two smaller black holes. This “hierarchical” backstory is vastly different from the textbook version of how black holes emerge from the explosive death of a star. “Overall in the universe, black holes are merging all the time,” Cailin Plunkett, the study’s first author and a graduate student at the Massachusetts Institute of Technology, told MIT News. “Now we’re seeing a relatively consistent picture where there’s a decent percentage of black holes that are coming from this repeated pathway.”
Tracking the invisible Gravitational waves that reach Earth’s detectors typically come from extremely intense events. Over the years, LIGO has picked up some truly perplexing signals. For example, last summer it found the most colossal black hole merger ever—and if that wasn’t wild enough, the black holes that took part in the merger lie within a cosmic “dead zone” for black holes.
This zone refers to a range of black hole masses in which, physically speaking, black holes can’t form through ordinary stellar collapse. From these discoveries, astronomers realized just how little we knew about black holes, which are challenging to investigate directly. In that sense, it was a no-brainer that the ever-growing catalog of LIGO’s gravitational signals would turn up entirely new insights about black holes. “It is increasingly clear, both from individual events and population analyses, that massive black holes exist in [this] range,” the researchers wrote in the latest paper. “These observations have spurred further investigation into mechanisms that can populate this gap.”
A wobbly imprint The latest research represents one such investigation. During mergers, the two black holes spiral toward each other along an orbital plane. When one or both black hole spins are misaligned, the orbital plane can wobble, or “precess,” the researchers explained to MIT News. The degree to which the disk wobbles acts as a parameter from which researchers can measure the masses and spins of the merging black holes. One telling sign of hierarchical mergers is that they’re “lopsided,” meaning one of the pair has a much higher spin and mass than the other. For the study, the team created an analytic model to capture the kind of wobble that would have emerged from second-generation black holes. Around 14% of merging black holes followed this pattern, and the second-generation black holes identified had a very specific range of masses, at around 20 solar masses or 40 solar masses and above. Of mysterious origins To be fair, that might not sound like a whole lot. But it demonstrates that a sizeable portion of known black holes indeed follow this pattern. As for why, the team suspects hierarchical mergers emerge from dense stellar environments. Simply, when multiple neighboring stars die and collapse into black holes, the dense environment can make it easier for those black holes to find each other and merge. That could further lead to the formation of second-generation black holes. Theoretically, this could “repeat potentially ad infinitum, by virtue of the fact that you have a ton of stars and black holes in this really dense environment,” Plunkett said.
But an ensuing mystery concerns those black holes in the 40-and-above regime, which coincides with the aforementioned “death zones” for black hole masses. According to stellar evolution theory, black holes born of supernovas shouldn’t leave any black holes above roughly 45 solar masses, explained Plunkett. “Yet we have seen black holes that are that massive,” she mused. “And the question is: Where did they come from?” For now, it’s hard to say when we’ll get an answer to that question, if ever. But one thing seems to be clear: black holes are a lot weirder than we could ever imagine. #Scientists #Black #Holes #Born #Black #HolesBlack holes,Gravitational wave,LIGO](https://i0.wp.com/gizmodo.com/app/uploads/2026/07/black-hole-hierarchial-mergers-1280x853.jpg?ssl=1 "Scientists Say Some Black Holes Are Born From Other Black Holes
Since LIGO’s Nobel-winning discovery of gravitational waves—ripples in spacetime—the U.S.-based detector has been picking up on hundreds of signals from black hole mergers. And, after a decade of studying gravitational waves, researchers believe a significant fraction of black holes may come from cosmic chain reactions. A recent paper published in Physical Review Letters describes an analysis of 155 pairs of binary black holes, identified by LIGO and its sisters, Virgo and KAGRA, in Italy and Japan, respectively. According to the study, about 14% of merging black holes may be what’s called “second-generation black holes,” or black holes that form from previous mergers of two smaller black holes. This “hierarchical” backstory is vastly different from the textbook version of how black holes emerge from the explosive death of a star. “Overall in the universe, black holes are merging all the time,” Cailin Plunkett, the study’s first author and a graduate student at the Massachusetts Institute of Technology, told MIT News. “Now we’re seeing a relatively consistent picture where there’s a decent percentage of black holes that are coming from this repeated pathway.”
Tracking the invisible Gravitational waves that reach Earth’s detectors typically come from extremely intense events. Over the years, LIGO has picked up some truly perplexing signals. For example, last summer it found the most colossal black hole merger ever—and if that wasn’t wild enough, the black holes that took part in the merger lie within a cosmic “dead zone” for black holes.
This zone refers to a range of black hole masses in which, physically speaking, black holes can’t form through ordinary stellar collapse. From these discoveries, astronomers realized just how little we knew about black holes, which are challenging to investigate directly. In that sense, it was a no-brainer that the ever-growing catalog of LIGO’s gravitational signals would turn up entirely new insights about black holes. “It is increasingly clear, both from individual events and population analyses, that massive black holes exist in [this] range,” the researchers wrote in the latest paper. “These observations have spurred further investigation into mechanisms that can populate this gap.”
A wobbly imprint The latest research represents one such investigation. During mergers, the two black holes spiral toward each other along an orbital plane. When one or both black hole spins are misaligned, the orbital plane can wobble, or “precess,” the researchers explained to MIT News. The degree to which the disk wobbles acts as a parameter from which researchers can measure the masses and spins of the merging black holes. One telling sign of hierarchical mergers is that they’re “lopsided,” meaning one of the pair has a much higher spin and mass than the other. For the study, the team created an analytic model to capture the kind of wobble that would have emerged from second-generation black holes. Around 14% of merging black holes followed this pattern, and the second-generation black holes identified had a very specific range of masses, at around 20 solar masses or 40 solar masses and above. Of mysterious origins To be fair, that might not sound like a whole lot. But it demonstrates that a sizeable portion of known black holes indeed follow this pattern. As for why, the team suspects hierarchical mergers emerge from dense stellar environments. Simply, when multiple neighboring stars die and collapse into black holes, the dense environment can make it easier for those black holes to find each other and merge. That could further lead to the formation of second-generation black holes. Theoretically, this could “repeat potentially ad infinitum, by virtue of the fact that you have a ton of stars and black holes in this really dense environment,” Plunkett said.
But an ensuing mystery concerns those black holes in the 40-and-above regime, which coincides with the aforementioned “death zones” for black hole masses. According to stellar evolution theory, black holes born of supernovas shouldn’t leave any black holes above roughly 45 solar masses, explained Plunkett. “Yet we have seen black holes that are that massive,” she mused. “And the question is: Where did they come from?” For now, it’s hard to say when we’ll get an answer to that question, if ever. But one thing seems to be clear: black holes are a lot weirder than we could ever imagine. #Scientists #Black #Holes #Born #Black #HolesBlack holes,Gravitational wave,LIGO")
![Scientists Say Some Black Holes Are Born From Other Black Holes
Since LIGO’s Nobel-winning discovery of gravitational waves—ripples in spacetime—the U.S.-based detector has been picking up on hundreds of signals from black hole mergers. And, after a decade of studying gravitational waves, researchers believe a significant fraction of black holes may come from cosmic chain reactions. A recent paper published in Physical Review Letters describes an analysis of 155 pairs of binary black holes, identified by LIGO and its sisters, Virgo and KAGRA, in Italy and Japan, respectively. According to the study, about 14% of merging black holes may be what’s called “second-generation black holes,” or black holes that form from previous mergers of two smaller black holes. This “hierarchical” backstory is vastly different from the textbook version of how black holes emerge from the explosive death of a star. “Overall in the universe, black holes are merging all the time,” Cailin Plunkett, the study’s first author and a graduate student at the Massachusetts Institute of Technology, told MIT News. “Now we’re seeing a relatively consistent picture where there’s a decent percentage of black holes that are coming from this repeated pathway.”
Tracking the invisible Gravitational waves that reach Earth’s detectors typically come from extremely intense events. Over the years, LIGO has picked up some truly perplexing signals. For example, last summer it found the most colossal black hole merger ever—and if that wasn’t wild enough, the black holes that took part in the merger lie within a cosmic “dead zone” for black holes.
This zone refers to a range of black hole masses in which, physically speaking, black holes can’t form through ordinary stellar collapse. From these discoveries, astronomers realized just how little we knew about black holes, which are challenging to investigate directly. In that sense, it was a no-brainer that the ever-growing catalog of LIGO’s gravitational signals would turn up entirely new insights about black holes. “It is increasingly clear, both from individual events and population analyses, that massive black holes exist in [this] range,” the researchers wrote in the latest paper. “These observations have spurred further investigation into mechanisms that can populate this gap.”
A wobbly imprint The latest research represents one such investigation. During mergers, the two black holes spiral toward each other along an orbital plane. When one or both black hole spins are misaligned, the orbital plane can wobble, or “precess,” the researchers explained to MIT News. The degree to which the disk wobbles acts as a parameter from which researchers can measure the masses and spins of the merging black holes. One telling sign of hierarchical mergers is that they’re “lopsided,” meaning one of the pair has a much higher spin and mass than the other. For the study, the team created an analytic model to capture the kind of wobble that would have emerged from second-generation black holes. Around 14% of merging black holes followed this pattern, and the second-generation black holes identified had a very specific range of masses, at around 20 solar masses or 40 solar masses and above. Of mysterious origins To be fair, that might not sound like a whole lot. But it demonstrates that a sizeable portion of known black holes indeed follow this pattern. As for why, the team suspects hierarchical mergers emerge from dense stellar environments. Simply, when multiple neighboring stars die and collapse into black holes, the dense environment can make it easier for those black holes to find each other and merge. That could further lead to the formation of second-generation black holes. Theoretically, this could “repeat potentially ad infinitum, by virtue of the fact that you have a ton of stars and black holes in this really dense environment,” Plunkett said.
But an ensuing mystery concerns those black holes in the 40-and-above regime, which coincides with the aforementioned “death zones” for black hole masses. According to stellar evolution theory, black holes born of supernovas shouldn’t leave any black holes above roughly 45 solar masses, explained Plunkett. “Yet we have seen black holes that are that massive,” she mused. “And the question is: Where did they come from?” For now, it’s hard to say when we’ll get an answer to that question, if ever. But one thing seems to be clear: black holes are a lot weirder than we could ever imagine. #Scientists #Black #Holes #Born #Black #HolesBlack holes,Gravitational wave,LIGO](https://gizmodo.com/app/uploads/2026/07/black-hole-hierarchial-mergers-1280x853.jpg "Scientists Say Some Black Holes Are Born From Other Black Holes
Since LIGO’s Nobel-winning discovery of gravitational waves—ripples in spacetime—the U.S.-based detector has been picking up on hundreds of signals from black hole mergers. And, after a decade of studying gravitational waves, researchers believe a significant fraction of black holes may come from cosmic chain reactions. A recent paper published in Physical Review Letters describes an analysis of 155 pairs of binary black holes, identified by LIGO and its sisters, Virgo and KAGRA, in Italy and Japan, respectively. According to the study, about 14% of merging black holes may be what’s called “second-generation black holes,” or black holes that form from previous mergers of two smaller black holes. This “hierarchical” backstory is vastly different from the textbook version of how black holes emerge from the explosive death of a star. “Overall in the universe, black holes are merging all the time,” Cailin Plunkett, the study’s first author and a graduate student at the Massachusetts Institute of Technology, told MIT News. “Now we’re seeing a relatively consistent picture where there’s a decent percentage of black holes that are coming from this repeated pathway.”
Tracking the invisible Gravitational waves that reach Earth’s detectors typically come from extremely intense events. Over the years, LIGO has picked up some truly perplexing signals. For example, last summer it found the most colossal black hole merger ever—and if that wasn’t wild enough, the black holes that took part in the merger lie within a cosmic “dead zone” for black holes.
This zone refers to a range of black hole masses in which, physically speaking, black holes can’t form through ordinary stellar collapse. From these discoveries, astronomers realized just how little we knew about black holes, which are challenging to investigate directly. In that sense, it was a no-brainer that the ever-growing catalog of LIGO’s gravitational signals would turn up entirely new insights about black holes. “It is increasingly clear, both from individual events and population analyses, that massive black holes exist in [this] range,” the researchers wrote in the latest paper. “These observations have spurred further investigation into mechanisms that can populate this gap.”
A wobbly imprint The latest research represents one such investigation. During mergers, the two black holes spiral toward each other along an orbital plane. When one or both black hole spins are misaligned, the orbital plane can wobble, or “precess,” the researchers explained to MIT News. The degree to which the disk wobbles acts as a parameter from which researchers can measure the masses and spins of the merging black holes. One telling sign of hierarchical mergers is that they’re “lopsided,” meaning one of the pair has a much higher spin and mass than the other. For the study, the team created an analytic model to capture the kind of wobble that would have emerged from second-generation black holes. Around 14% of merging black holes followed this pattern, and the second-generation black holes identified had a very specific range of masses, at around 20 solar masses or 40 solar masses and above. Of mysterious origins To be fair, that might not sound like a whole lot. But it demonstrates that a sizeable portion of known black holes indeed follow this pattern. As for why, the team suspects hierarchical mergers emerge from dense stellar environments. Simply, when multiple neighboring stars die and collapse into black holes, the dense environment can make it easier for those black holes to find each other and merge. That could further lead to the formation of second-generation black holes. Theoretically, this could “repeat potentially ad infinitum, by virtue of the fact that you have a ton of stars and black holes in this really dense environment,” Plunkett said.
But an ensuing mystery concerns those black holes in the 40-and-above regime, which coincides with the aforementioned “death zones” for black hole masses. According to stellar evolution theory, black holes born of supernovas shouldn’t leave any black holes above roughly 45 solar masses, explained Plunkett. “Yet we have seen black holes that are that massive,” she mused. “And the question is: Where did they come from?” For now, it’s hard to say when we’ll get an answer to that question, if ever. But one thing seems to be clear: black holes are a lot weirder than we could ever imagine. #Scientists #Black #Holes #Born #Black #HolesBlack holes,Gravitational wave,LIGO")
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