Nvidia has introduced its latest artificial intelligence (AI) chip, boasting a 30-fold performance increase over its predecessor. With an 80% market share, the company aims to solidify its position as a dominant force in the industry.
In addition to unveiling the B200 “Blackwell” chip, Nvidia’s CEO Jensen Huang outlined a new suite of software tools at the annual developer conference. The company, ranked as the third-most valuable in the US after Microsoft and Apple, has witnessed a 240% surge in its shares over the past year, reaching a market value of $2 trillion (£1.57 trillion) last month.
As Mr. Huang opened the conference, he humorously remarked, “I hope you realize this is not a concert.” However, Bob O’Donnell from Technalysis Research, present at the event, noted a palpable excitement, likening the atmosphere to the early days of Steve Jobs’ presentations.
Nvidia anticipates major customers like Amazon, Google, Microsoft, and OpenAI will utilize the new flagship chip in cloud-computing services and their own AI products. The company also highlighted new software tools, called microservices, designed to enhance system efficiency and simplify the integration of AI models into business operations.
Among other announcements, Nvidia introduced a new line of chips for automobiles capable of running chatbots within vehicles. Chinese electric vehicle manufacturers BYD and Xpeng are set to adopt these new chips.
Mr. Huang also unveiled a new series of chips tailored for creating humanoid robots, inviting several robots to join him on stage.
Established in 1993, Nvidia initially gained recognition for producing graphics processing chips, particularly for computer games. Prior to the AI boom, the company began incorporating features into its chips to facilitate machine learning, a move that has helped it expand its market share.
Now considered a pivotal player in the advancement of AI-powered technology, Nvidia faces escalating competition from rivals like AMD and Intel.
Despite this, Mr. O’Donnell noted the rapid growth of the market, suggesting that even if Nvidia were to lose some market share, it could still grow its overall business due to the abundance of opportunities in the sector.
