NVIDIA sets the data center AI pace at GTC

Pictured: Jensen Huang, CEO of NVIDIA


At its GTC event for developers last week, NVIDIA launched an array of technologies, including a new GPU, CPU, chip interfaces and networking gear, all designed to support the biggest and most powerful data centers as they build AI into their core.


“Computer science is being reinvented as we speak,” said NVIDIA CEO Jensen Huang on a Q&A with industry analysts. “The way you write software is being fundamentally changed by AI and ML. Data centers are becoming AI factories with exponentially more data and intelligence.”


Analyst Scott Raynovich, founder of Futuriom, commented that NVIDIA is planning to storm many lucrative, adjacent cloud datacenter markets, including networking software, data processing units (DPUs), and AI software: “More importantly, it has a vision of how all of this can be coordinated to make it the dominant provider of AI engines – or as CEO Huang calls them ‘AI factories’,” he said. “It helped that NVIDIA management outlined a $1 trillion market opportunity in presentations to investors. This includes what they foresee as a significant expansion of its software business, in which it would sell software tools for AI. According to investor research notes we have seen, NVIDIA described a $300 million market opportunity for this business alone, priced at $2K per CPU socket per year. That is a very attractive recurring revenue stream that has got investors excited.”


Huang, he added, painted a picture of NVIDIA supplying the compute processing, networking, and even software for a wide range of new AI applications, including robotics, synthetic biology, and manufacturing.


“Indeed, in Futuriom’s recent research into datacenter hotspots, factory automation and computer vision have emerged as areas that are gaining the most traction for investment as consumers of AI, as many industries realize the business efficiencies that can be gained,” concluded Raynovich.

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