Nvidia, the leading developer of AI chips, has seen its shares rise, with investors viewing AI chips as the new gold. The company’s recent forecast of a huge jump in sales has sparked interest in AI-related parallel processing, opening up a new business opportunity for Nvidia and its competitors while giving researchers powerful tools to explore the frontiers of AI development.
The rise of AI chips
AI chips are suddenly at the center of what some experts are calling an AI revolution that could reshape the tech sector and potentially the world. Eleven years ago, Nvidia won a competition to supply chips for a supercomputer that could perform a quadrillion calculations per second, ten times faster than its closest competitor. This win sparked interest in AI-related parallel processing, opened up a new business opportunity for Nvidia and its competitors, while providing researchers with powerful tools to explore the frontiers of AI development.
Today, Nvidia is the dominant supplier of chips for building and updating AI systems. One of its latest products, the H100 GPU, has 80 billion transistors, about 13 million more than Apple’s latest high-end processor for its MacBook Pro notebook. Unsurprisingly, this technology doesn’t come cheap, given that the H100 GPU costs around $10,000.
The future of AI chips
As demand for AI chips continues to grow, companies are scrambling to order chips to further their generative AI ambitions. OpenAI’s release of ChatGPT caused quite a stir on Wall Street, and that bodes well for Nvidia. Competition is booming, but “we expect Nvidia to maintain its industry-standard status for the foreseeable future given its competitive advantage and the urgency with which customers are developing/deploying increasingly complex AI models,” wrote Goldman Sachs analyst Toshiya Hari in a research note.
Intel, Nvidia’s main competitor, has been left with virtually no market share after its potential Nvidia competitor, a chip called Ponte Vecchio, suffered years of delays. Intel announced on Monday that deliveries for the Argonne National Lab’s Aurora supercomputer based on Ponte Vecchio are almost complete. Intel claims it outperforms Nvidia’s latest AI chip, the H100. But Intel’s successor chip Falcon Shores will not be available until 2025.
The influence of AI chips
The semiconductor chip is entering a new stratospheric phase, with AI chips being the new gold. Supply chain outages during the pandemic and national security concerns highlight the need for more chip capacity, and more domestic production in particular. The AI chip boom isn’t exactly new: Nvidia foresaw it a long time ago. The age of AI is in full swing and Nvidia CEO Jensen Huang has said that AI is the most powerful force of our time.
What does AI mean for the world around us? Here are five industries that are impacting people’s daily lives and could drive demand for Nvidia products in the years to come:
Automotive: Nvidia’s DRIVE platform provides hardware and software development tools for automotive companies to develop self-driving technology. The company’s business pipeline is valued at $14 billion and includes 25 automakers. Healthcare: AI is already being used to diagnose diseases, develop new medicines, and improve patient outcomes. Nvidia’s Clara platform aims to help healthcare providers use AI to improve patient care. Gaming: Nvidia’s GPUs have long been used to make video games more realistic. The company is expanding into AI chips used in supercomputers, data centers and drug development. Robotics: AI is being used to develop robots that can perform tasks that are too dangerous or difficult for humans. Nvidia’s Jetson platform aims to help developers create intelligent robots. Farming: AI is used to improve crop yields, reduce waste and increase efficiency. Nvidia’s Metropolis platform aims to help farmers use AI to improve their operations. Diploma
AI chips are the future of computing, and Nvidia is leading the way. As demand for AI chips continues to grow, Nvidia is well positioned to maintain its status as the industry standard for the foreseeable future. With AI being the most powerful force of our time, the impact of AI chips on our world will be immense, and Nvidia is at the forefront of this revolution.
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