Nvidia Continues Its AI Journey with Unveiling New Technologies
Nvidia Corp was excited to announce new technologies and chips that the company claims to improve the computing speed of more complex algorithms of artificial intelligence. It is Nvidia’s way to step up competition against its rival chipmakers contending for the profitable data center business.
The company presented details of the new graphic chips that will serve as the core of the AI infrastructure and released the H100 chip, and the latest processor chip known as the Grace CPU Superchip based on the technology of Arm Ltd, a British chip company. This is Nvidia’s first-ever Arm-based chip that will be launched after the failed deal of the purchase of Arm.
Nvidia was also proud to announce Eos, the new supercomputer that is believed to be the fastest AI system in the world once it starts its operation in the latter part of 2022.
According to Jensen Huang, Nvidia Chief Executive Officer, data centers are now turning into AI factories where they process and refine mountains of data to create intelligence and referred to the H1000 chip as the engine of the AI infrastructure.
The company also added that its new technologies working together will help cut back computing times to a matter of days from weeks for some work that involves training AI models.
More and more companies today are using machine and AI learning for a plethora of things, from making suggestions for the next videos to watch on your smartphone or TV to the discovery of a new life-saving drug.
Based on all these announcements from Nvidia, it is safe to say that the company is starting to become a more substantial threat to AMD and Intel in the cloud computing and data center markets.
Intel Corp has long been the largest producer of central processors for most data centers. However, it has been seeing some tough competition for the fast-growing lucrative space rice.
Colette Kress, Nvidia’s CFO, stated that as AI computing pushes forward with the company’s new chips, the market opportunity for Nvidia will reach a trillion dollars from chips, systems, enterprise businesses, and gaming.
Nvidia also added that it plans to further monetize its software business in the near future. It is not a surprise, considering that the company’s open-source software served as the key driver for other companies to utilize its chips.
Kress added that they are already selling software to their enterprises that now amounts to a couple hundred million dollars, presenting the company with an opportunity for growth. Going forward, this software business will help improve the gross margins of Nvidia at a time when costs increased because of constraints in supply and shortages of chip components.
Huang also added that software for the automotive market will be a key driver forward as well. The auto industry is now poised to become Nvidia’s next multi-billion-dollar business.
Nvidia has already started to ship Drive Orin, its automotive vehicle computer, and the maker of luxury electric cars Lucid Motors and the Chinese manufacturer of electric vehicles BYD Co LTD will also have their next-generation fleets use Nvidia Drive.
