An anonymous reader shared this report from Reuters.
Nvidia is building a new business unit focused on designing custom chips, including advanced AI processors, for cloud computing companies and others, nine people familiar with the company's plans told Reuters. Ta. The company, a leading global designer and supplier of AI chips, aims to capture a slice of the exploding market for custom AI chips and protect itself from a growing number of companies pursuing alternatives to its products. I am.
The Santa Clara, Calif.-based company controls about 80% of the high-end AI chip market, and its position has seen its stock market value increase by more than 40% so far this year, after more than tripling in 2023. % to $1.73 trillion. Companies including Nvidia customers, ChatGPT developer OpenAI, Microsoft, Alphabet, and Meta Platforms are scrambling to secure supplies of their chips to compete in the rapidly emerging field of generative AI. There is. The company's H100 and A100 chips serve as general-purpose general-purpose AI processors for many major customers. But tech companies are starting to develop their own internal chips for specific needs. Doing so can reduce energy consumption and reduce design costs and time.
Nvidia is trying to play a role in helping those companies develop custom AI chips that are now flowing to rivals such as Broadcom and Marvell Technologies, said the person, who declined to be named because he was not authorized to speak publicly. officials said.
Nvidia's entry into this space could erode Broadcom and Marvell's sales.
