NVIDIA to set up a new unit for custom chips, targets the expanding AI market

Chips to be tailored for company’s specific needs

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Published onFebruary 12, 2024

published onFebruary 12, 2024

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In a bid to capture the rapidly expanding market and cement its place as the leader, NVIDIA is setting up a new unit to deliver custom-made chips to Microsoft, Google, Meta, and OpenAI, amongst others, as reported byReuters.

The new unit is also focused on cloud computing firms, but the primary target remains AI(Artificial Intelligence)processors, a sector where NVIDIA is facing competition fromBroadcomandMarvell Technology.

At present, NVIDIA commands a market share of 80% in this sector, and its present market capitalization stands at $1.78 trillion.

To ensure that it doesn’t lose on potential clients, NVIDIA will start producing dedicated chips for specific needs, given that the currently popular options,H100andA100, are an all-purpose solution. The custom-made chips will help companies reduce cost, effort, and time.

As per reports, NVIDIA is already in talks with Microsoft, Google, Meta, and OpenAI, though there has been no official confirmation from any of the parties.

If these reports are true, it will further increase NVIDIA’s market share and shoot the stock’s value higher than ever before!

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NVIDIA to set up a new unit for custom chips, targets the expanding AI market