Nvidia has for years made the computer chips that can run graphics-heavy video games. But several years ago, artificial intelligence researchers began using those same chips to run the powerful new algorithms that were causing breakthroughs in the field.
. Nvidia has been steadily growing its AI-focused business over the past several years, but the explosion of interest and investment in the space over the last six months has turbocharged its sales.
Training AI models demands chips that have high amounts of memory, said Greg Osuri, the founder of Akash Networks, a marketplace for companies to sell access to their GPUs to other firms that need it. “Nvidia happens to be the only company that makes those chips.”For months, startups trying to get into the AI race have competed with Big Tech companies for Nvidia’s GPUs.
A set of eight of the most advanced chips can cost $300,000, Osuri said. Companies buy thousands of them.
Nvidia’s stock had already more than doubled this year as the AI boom took off, but the company blew past already-high expectations on Wednesday when it forecast that sales in the second quarter would be $11 billion, compared to the $7 billion that Wall Street analysts had forecast.Other companies are trying to find ways to run AI programs without using Nvidia’s chips, such as Microsoft partnering with Nvidia rival AMD to build new AI-focused chips, or Google’s Tensor Processing Units.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why the Nvidia RTX 4060 Ti simply isn't enough for 2023 | Digital TrendsThe RTX 4060 Ti brings the best of Nvidia's new features, but it has a critical flaw that makes it tough to recommend in 2023.
Read more »
Explainer: Why are Nvidia's shares soaring and what is its role in the AI boom?Nvidia Corp closed in on a trillion-dollar market value on Thursday as shares surged 25% following a bumper earnings report that forced Wall Street to reassess the potential windfall for the chipmaker from an artificial intelligence boom.
Read more »
Nvidia barrels toward rare $1 trillion valuation after putting a dollar figure on AI boostNvidia Corp. could be within sight of becoming only the seventh U.S. company to top a valuation of $1 trillion after an audacious, AI-charged forecast.
Read more »
Nvidia shares soar nearly 30% as sales forecast jumps and AI boomsNvidia Corp on Wednesday forecast second-quarter revenue more than 50% above Wall Street estimates, and said it is boosting supply to meet surging demand for its artificial-intelligence chips, which are used to power ChatGPT and many similar services.
Read more »
Nvidia CFO on record-breaking forecast: 'The inflection point of AI is here'OPINION: Nvidia CFO Colette Kress tells columnist tpoletti that generative AI is 'the app of all apps' as she predicts record revenue.
Read more »
Nvidia surge boosts Nasdaq futures while debt-ceiling debacle damps DowU.S. stock futures were mixed as Nvidia results boosted tech but debt-ceiling concerns weighed on the Dow.
Read more »