Nvidia Launches New Business Unit Targeting Custom AI Chip Market

Nvidia, the leading global designer and supplier of AI chips, has announced the establishment of a new business unit focused on creating custom chips for cloud computing companies and other businesses. This strategic move aims to tap into the rapidly expanding custom AI chip industry and safeguard its position in the competitive landscape.

The newly formed business unit will be dedicated to developing tailor-made chips, including powerful artificial intelligence (AI) processors, catering to the specific needs of cloud computing companies and other enterprises. By venturing into this market segment, Nvidia aims to mitigate the threat posed by increasing competition and capitalize on the growing demand for specialized AI chips.

Major customers of Nvidia, such as OpenAI, Microsoft, Alphabet, and Meta Platforms, have been actively seeking its chips to stay competitive in the dynamic generative AI market. With approximately 80% market share in high-end AI chips, Nvidia's market value has surged by 40% this year to $1.73 trillion, following a significant growth in 2023.

While Nvidia's H100 and A100 processors have served as versatile AI processors for many large clients, there is a trend among IT firms to develop custom internal chips tailored to their specific requirements. This trend promises benefits such as reduced energy consumption, lower design costs, and faster development times.

In response to this trend, Nvidia aims to assist companies in creating unique AI chips. According to anonymous sources familiar with the matter, Nvidia is collaborating with various firms to facilitate the development of custom AI chips, potentially including competitors like Marvell Technology and Broadcom.

In a related development, the GIGABYTE G6 KF: 16" Gaming Laptop, featuring a potent GeForce RTX 4060 graphics engine manufactured by Nvidia, is now available on Amazon at a discounted price of $881.99, offering consumers an entry point into the realm of high-performance Nvidia CPUs.

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