NVIDIA has recently established a new business division within the company, with a strong focus on chip design, as specified by their cloud service provider clients. Their aim is to develop advanced AI processing chips. In the past, NVIDIA’s AI processing chips, such as the H100, have been widely utilized by AI and cloud service providers. However, these companies have also reported that they have designed and developed their own chips internally. The main reason for this is to meet specific requirements and improve energy efficiency. This news indicates that NVIDIA is looking to enter this market and is becoming a preferred option for cloud companies.
According to research firm 650 Group, the market for custom or made-to-order chips for data centers is expected to reach a market value of up to $10 billion this year and is projected to significantly increase by 2025.
TLDR: NVIDIA has established a new business division focusing on chip design to meet the demands of their cloud service provider clients. These providers have reported designing their own chips to meet specific requirements and improve energy efficiency. The market for custom chips for data centers is estimated to reach $10 billion this year and is expected to grow exponentially by 2025.
Leave a Comment