NVIDIA (NVDA), a chipmaker that continues to ride the generative AI wave, unveiled a slew of new AI-focused products on Monday.
The lineup includes a high-performance supercomputer called the Nvidia DGX GH200 and a platform called Nvidia ACE that leverages generative AI for video game development. Nvidia also said advertising giant WPP will use its platform and generative AI to build a content engine for creating ads.
The announcement saw the graphics chip giant’s stock surge last week after news that the company far exceeded Wall Street’s expectations for second-quarter sales based on the strength of its data center business. was done later.
Nvidia shares are up more than 165% year-to-date as of Friday afternoon, while the S&P 500 (^GSPC) is up just 9.5% over the same timeframe. Rival chip maker AMD (AMD) also saw a similar rally, up 93%. But Intel (INTC) has lagged behind, with its shares up just 8%.
Nvidia CEO Jensen Huang said at a recent earnings call that he believes data center operators are looking to bring AI computing power to their equipment. That would encourage a move away from the central processing units that underpin Intel’s previous dominance in the data center, and toward graphics chips like the one his company makes.
According to Nvidia, the new DGX GH200 supercomputer combines 256 GH200 superchips that can act as a single graphics processing unit (GPU). The result is a system with nearly 500 times the memory of a single Nvidia DGX A100 system.
“Generative AI, large language models and recommender systems are the digital engines of the modern economy,” said Nvidia CEO Jensen Huang in a statement.
“The DGX GH200 AI supercomputer integrates NVIDIA’s leading accelerated computing and networking technologies to expand the frontiers of AI.”
The GH200 superchip powering the new supercomputer works by combining Nvidia’s Arm-based Grace GPU and Nvidia H100 Tensor Core GPU in a single package.
So far, Nvidia says Google (GOOG, GOOGL) Cloud, Facebook parent company Meta (META) and Microsoft (MSFT) are among the first companies to access the supercomputer. The company also said he is building its own supercomputer running four of his DGX 200 systems at the same time to power its own research.
Nvidia is adding the product on the back of a huge surge in interest in generative AI that OpenAI started with the release of its ChatGPT bot last year. Since then, tech companies have continued to release or announce that they have their own generative AI platforms.
Microsoft and Google are leading the way thanks to Microsoft’s partnership with OpenAI and Google’s years of AI research. Meanwhile, Facebook owner Meta is building a generative AI team, and Apple (AAPL) is ramping up for its own efforts.
Nvidia Omniverse and AI
Alongside Monday’s hardware announcement, Nvidia announced that it has partnered with advertising giant WPP to develop a content engine that uses Omniverse technology and generative AI capabilities to help build ad content.
The idea is to allow WPP’s clients to leverage Nvidia’s technology, thereby reducing the time and pricing costs of ad production.
Speaking of omniverse, electronics manufacturers such as Foxconn, Pegatron, and Wistron use omniverse technology to create digital twins of their factory floors so they know how to best lay them out before making any physical changes. said Nvidia.
Nvidia also announced an ACE-generated AI model for video games. The service will allow game companies to use generative AI for large-scale games with multiple non-player characters, providing unique dialogue and ways to interact with players that would otherwise have to be individually programmed by developers. will be
As interest in generative AI grows, so does Nvidia’s stock. Analysts say NVIDIA is far ahead of competing chips in AI processing. But no one knows how long this situation will last.
Daniel Howley Technical editor at Yahoo Finance. He has covered the tech industry since his 2011. You can follow him on Twitter. @Daniel Howley.
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