Nvidia unveils new technology to speed up AI and launches a new supercomputer

Nvidia’s new Grace CPU Superchip unveiled at the chipmaker’s AI developer conference is seen in this undated image obtained by Reuters. Nvidia/Handout via REUTERS

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March 22 (Reuters) – Nvidia Corp. (NVDA.O) on Tuesday announced new chips and technologies that it said will boost the computing speed of increasingly complicated artificial intelligence algorithms, intensifying competition against rival chipmakers vying for the lucrative data center business.

The company provided details of new graphics chips (GPUs) that will be at the core of the AI ​​infrastructure, launching the H100 chip and a new processor chip called Grace CPU Superchip, based on technology from British chip firm Arm Ltd. It’s Nvidia’s first Arm-based chip to come out since its deal to buy Arm fell apart last month.

Nvidia also announced its new “Eos” supercomputer, which it said will be the world’s fastest artificial intelligence system when it goes live later this year.

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“Data centers are becoming AI factories: processing and refining mountains of data to produce intelligence,” Nvidia CEO Jensen Huang said at Nvidia’s AI developer conference online, calling the H100 chip the “engine” of the AI ​​infrastructure.

Nvidia said the new technologies together will help cut computation times from weeks to days for some jobs that involve training AI models.

Companies have been using AI and machine learning for a multitude of things, from making recommendations for the next video to watch on TVs and cell phones, to discovering new drugs.

“It’s clear from the latest announcements that Nvidia is becoming a more significant threat to Intel and AMD in the cloud computing and data center markets,” said Bob O’Donnell, chief analyst at TECHnalysis Research.

Intel Corporation(INTC.O)It has been the largest manufacturer of central processors for data centers, but has seen competition grow for the lucrative, fast-growing space.

However, Vlad Galabov, head of the cloud and data center research practice at research firm Omdia, said he is concerned about the H100 chip’s power consumption and said it could inhibit the processor’s broad market appeal.

Nvidia CFO Colette Kress said that with the new chips driving AI computing, the company’s market opportunity was roughly $1 trillion, from games to chips and systems to enterprise businesses.

Nvidia, whose open source software has been a key factor in getting companies to use its chips, said it was looking to further monetize its software business in the future.

“We’ve already been selling software to our businesses and this is a couple hundred million dollars today and we think this is a growth opportunity for us,” Kress said, adding that going forward, the software business will help that Nvidia’s gross margins improve at the same time. when chip component shortages and supply constraints have increased costs.

Software for the auto market will also be a key driver, Huang said. “The car is on its way to becoming our next multibillion-dollar business,” she said.

Nvidia has started shipping its “Drive Orin” autonomous vehicle computer this month and Chinese electric vehicle maker BYD Co Ltd (002594.SZ) and luxury electric car maker Lucid Motors (LCID.O) will use Nvidia Drive for its next-gen fleets, he said.

Danny Shapiro, Nvidia’s vice president of automotive, said there was $11 billion in automotive deals in the works over the next six years, up from $8 billion he forecast last year. The expected revenue growth will come from hardware and increased recurring revenue from Nvidia’s software, Shapiro said.

Nvidia shares closed down 0.8% at $265.24 on the Nasdaq.

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Reporting by Jane Lanhee Lee, additional reporting by Joseph White; Edited by Bernard Orr

Our standards: The Thomson Reuters Trust Principles.

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