New business unit for Nvidia
28 June 2024
News
According to sources in the know, Nvidia is building a new business unit with a focus on designing chips for cloud computing applications, including artificial intelligence processors. The plan could see the company grabbing a piece of the rapidly expanding AI chip industry.
Nvidia’s customers, including OpenAI, Microsoft, Alphabet, and Meta Platforms, have been securing a limited quantity of its chips to compete in the rapidly evolving generative AI market. With about 80% of the market for high-end AI chips under its control, Nvidia’s stock market value has increased by 40% this year to $1,73 trillion, after it more than tripled in value last year.
Its H100 and A100 chips serve as a generalised, all-purpose AI processor for many of their major customers. However, some technology companies have started to develop their own internal chips for specific needs. Doing so helps reduce energy consumption, and potentially can shrink the cost and time to design. Nvidia will be attempting to play a larger role in helping these companies develop custom AI chips that have recently been developed in rival firms such as Broadcom and Marvell Technology.
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