- The company also revealed the new supercomputer “Eos”, which it claims will be the world’s fastest AI system when operations start later this year.
- Intel and AMD in data center markets will face big-time competition due to the new launch by Nvidia.
Nvidia Corp. announced the launch of chips and technologies, which according to it, will enhance the computing speed of highly complicated Artificial Intelligence (AI) algorithms. This will allow it to compete with rival chipmakers trying to make data center a lucrative business.
The firm gave the details of the all-new Graphics Chips (GPU), which will form the basis of AI infrastructure. It also released the H100 chip and a new processor chip called the Grace CPU Superchip based on British chip firm Arm Ltd’s technology. This will be the first Arm-based chip from Nvidia ever since its plan to buy Arm did not see through last month.
The company has also revealed the new supercomputer “Eos”, which it claims will be the world’s fastest AI system when operations start later this year.
Nvidia believes that the new technologies will decrease the computing time from weeks to days for some work involving training AI models.
With advancements in technology, companies are increasingly using AI and Machine Learning for several things – right from making recommendations for the next video to new drug discovery, everything.
Intel Corp has been the biggest producer of central processors for data centers. Still, competition persists for this lucrative fast-growing space rise.
Regarding the new chip launch, Vlad Galabov, head of cloud and data center research practise at firm Omdia, said he has doubts about the H100 chip’s power consumption and said that the new chip might inhibit the processor’s broad market appeal.
Nvidia’s Chief Financial Officer Colette Kress said that the new chips pushing AI computing forward would move the company’s market opportunity to trillion dollars, from gaming to chips and systems and business.
Nivida said that it was looking forward to monetize its software business in the future, particularly since its open-source software has been driving companies to use its chips.
Nvidia Chief Executive Officer Jensen Huang said that Nvidia has started shipping the autonomous vehicle computer “Drive Orin” this month and Chinese electric vehicle maker BYD Co Ltd (002594.SZ) and luxury electric car maker Lucid Motors (LCID.O) will use the Nvidia Drive for the next generation fleets.
Nvidia shares closed down 0.8% at $265.24 on the Nasdaq.
“Data centers are becoming AI factories — processing and refining mountains of data to produce intelligence,” said Nvidia Chief Executive Officer Jensen Huang in a statement, calling the H100 chip the “engine” of AI infrastructure.
“It’s clear from the latest announcements that Nvidia is becoming a more significant threat to Intel and AMD in the data center and cloud computing markets,” said Bob O’Donnell chief analyst at TECHnalysis Research.
Kress added, “Already we have been selling software to our enterprises and this is a couple hundred million dollars today and we believe this is a growth opportunity for us”.