How will NVIDIA dominate AI without building it? The Hidden Giant

With the introduction of ChatGPT, a new wave of artificial intelligence is emerging, signaling a sea change in the tech landscape. The AI ​​business, which was worth just $18 billion in 2018, is expected to grow to a staggering $126 billion by 2025. Strangely, however, there are quietly swirling businesses that strategically leverage AI innovation without producing any AI products. of itself. What hidden resources are at your disposal? What grand schemes lie hidden in their covert operations? (Also read: Top AI experts sign open letter warning of ‘extinction’ risk)

silent riser

American multinational NVIDIA is the world’s first chip maker and the sixth publicly traded company with a valuation above $1 trillion, after Apple, Saudi Aramco, Microsoft, Alphabet and Amazon. So far in 2023, the company’s stock has surged 180 percent, peaking at $419.38. The stock is currently trading at $401.11 (Tuesday).

Nvidia’s stock soared after the company announced better-than-expected quarterly results. NVIDIA’s revenue forecast for the second quarter of fiscal year 2024 is high at a total of $11 billion, beating the consensus forecast by 50%.

Also read: “ChatGPT needs a 500ml bottle of water to answer 20-50 questions”: Survey

So what is driving this rise?

It’s all because of the rise of AI! The organization has perfected the technology to reinvent itself according to market demands, pushing it to the forefront of the industry. According to Microsoft, the OpenAI supercomputer is a single system with over 285,000 CPU cores, 10,000 GPUs, and 400 Gbit/s network connectivity for each GPU server.

NVIDIA is a master of trend adaptation.

Founded in 1993, NVIDIA is a pioneer in developing graphics processing units (GPUs) built to perform complex graphics computations.

Initially focused on GPUs for computer games, it quickly expanded its reach beyond gaming, with GPUs now being used in a variety of fields such as scientific research and data analysis. And now it’s quietly expanding its dominance in the AI ​​business.

READ ALSO | NVIDIA Announces DGX GH200, A New Class Of AI Supercomputer: Everything You Need To Know

NVIDIA vs. Intel

NVIDIA makes GPUs, which are an integral component of generative AI systems such as OpenAI’s ChatGPT and Google’s Bard. This gives it an advantage over other chip makers such as Intel, which primarily focus on manufacturing central processing units (CPUs).

CPUs are designed for everyday computing operations, such as running applications and operating systems. They excel at managing difficult tasks that must be completed one after another. A GPU, on the other hand, is a specialized processor optimized for parallel computing. This makes it ideal for activities such as graphics rendering, scientific simulations, and AI computation acceleration.