NVIDIA has recently established a new business unit within the company focusing on chip design, as specified by their cloud service provider clients. This new division is specifically dedicated to developing high-level AI processing chips. Previously, NVIDIA’s AI processing chips such as the H100 were widely used by various AI and cloud service provider companies. However, these companies have also reported that they have been designing and developing their own chips in-house. The main reason behind this move is to cater to specific requirements and have better control over energy consumption. This news indicates that NVIDIA aims to enter this market and become a viable option for cloud service provider companies.
According to research firm 650 Group, the market for custom or customized data center chips is estimated to be worth up to $10 billion this year. Moreover, it is projected to grow exponentially by 2025.
TLDR: NVIDIA has formed a new business unit to focus on chip design for high-level AI processing, in response to the demands of their cloud service provider clients. They aim to cater to specific needs and enhance energy efficiency. According to 650 Group, the market for custom data center chips is expected to reach a value of $10 billion this year and will continue to grow significantly by 2025.
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