Nvidia builds a new unit to supply ChatGPT, Microsoft, Google and Meta with custom AI chips
Nvidia has established a new business unit dedicated to creating custom chips for cloud computing companies and other businesses, including powerful artificial intelligence (AI) processors. This move has been made to protect itself against the increasing number of businesses seeking to outdo it and to secure a portion of the rapidly growing custom AI chip industry.
Nvidia's customers, including OpenAI, Microsoft, Alphabet, and Meta Platforms, have been rushing to secure 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, following a more than threefold increase in 2023.
For many large clients, its H100 and A100 processors serve as a versatile, all-purpose AI processor. However, IT firms are now creating custom internal chips to meet specific demands. This could help in reducing energy usage, design costs, and time.
Nvidia is now attempting to help these companies create unique AI chips that have been passed onto competing companies like Marvell Technology and Broadcom, according to anonymous sources who were not permitted to talk publicly.
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