Nvidia’s earnings reports are considered an important indicator of the artificial intelligence industry. The chipmaker’s advanced graphics processing units (GPUs), which enable the processing of complex neural networks, are what have made the current rise of generative AI possible. In recent years, as Silicon Valley giants rushed to create new chatbots and imaging tools, Nvidia’s revenue soared, allowing it to overtake Apple as the world’s most valuable public company. Since the launch of ChatGPT in November 2022, Nvidia’s share price has increased almost tenfold.
Almost everyone depends on Nvidia
Most of the Big Tech Those working on AI, even those that build their own processing units, rely heavily on Nvidia GPUs to train their AI models. For example, in October, Meta announced the development of its latest AI technology in a cluster of more than 100,000 Nvidia H100. For their part, smaller AI companies have been left without enough computing power as Nvidia has struggled to meet demand.
Blackwell, Nvidia’s new GPU, is made up of two pieces of silicon, each equivalent to the size of its previous chip, Hopper, which are combined into a single component. This design resulted in a chip reportedly four times faster and with more than twice as many transistors as its predecessor. But its launch has not been a bed of roses; Although it was scheduled for the second quarter, it ran into a production problem that delayed its launch for a few months. Huang took responsibility, pointing to a “design flaw” that “led to poor performance.” In August he declared Reuters that Taiwan Semiconductor Manufacturing Company Limited, Nvidia’s longtime partner in chip manufacturing, helped the manufacturer correct the problem.
Moorhead told WIRED that he remains bullish on Nvidia and is confident the generative AI market will continue to grow for at least the next 12 to 18 months, despite some recent reports suggesting AI progress is starting to plateau. : “I think the only way shareholders would see profits is if they were worried about capital expenditures or the profitability of hyperscalers,” referring to big tech companies like Amazon, Google, Microsoft and Meta that are strongly invested in AI cloud services. “But I think they’re going to keep buying Nvidia until that day comes,” adding that enterprise AI remains a growth area for Nvidia.
In the results delivery, Nvidia CFO Colette Kress said that Nvidia’s enterprise AI tools are in “full acceleration,” including an operating platform that allows other companies to build their own. chatbots and AI agents. Its clients include Salesforce, SAP and ServiceNow. Later, Huang said on the call: “We’re starting to see enterprise adoption of agentic AI. It’s the latest trend.”
Article originally published in WIRED. Adapted by Alondra Flores.
#Technical #problems #Nvidias #Blackwell #chip #CEO
