Nvidia unveils new technology to accelerate AI and launches a new supercomputer

Nvidia’s new Grace CPU chip unveiled at the chipmaker’s AI Developer Conference can be seen in this undated image obtained by Reuters. Nvidia/Handout via REUTERS

March 22 (Reuters) – Nvidia Corp on Tuesday announced new chips and technologies that it says will increase the computing speed of increasingly complicated artificial intelligence algorithms, intensifying competition against manufacturers chip rivals vying for lucrative data center businesses.

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

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

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

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

Companies are using AI and machine learning for a myriad of things — from recommending what video to watch next on TVs and cellphones — to discovering new drugs.

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

Intel Corp (INTC.O) has been the largest maker of central processors for data centers, but has seen competition for the fast and lucrative increase in space.

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

Nvidia Chief Financial Officer Colette Kress said that with new chips advancing AI computing, the company’s market opportunity is approximately $1 trillion, from games to chips and systems, and to businesses.

Nvidia, whose open-source software has been a key driver for companies to use its chips, said it was looking to monetize its software business even more in the future.

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

Software for the automotive market will also be a key driver, Huang said. “Automotive is on its way to becoming our next multi-billion dollar business,” he said.

Nvidia began shipping its “Drive Orin” self-driving 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 their next-generation fleets, he said.

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

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

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

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