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| Nvidia directly challenges Intel with a Grace chip |
Nvidia plans to produce a server chip called Grace based on British Arm technology.
This puts it in direct competition with rival Intel and further complicates the antitrust review of Nvidia's $ 40 billion Arm acquisition.
Intel is the world's largest manufacturer of data center server processors, but faces increasing competition from chips based on Arm technology.
With the Grace server processor, NVIDIA became the largest chip manufacturer to date and challenged Intel in its primary market.
Arm technology uses chips in most smartphones and has been in data centers for a number of years.
Nvidia's entry into the market could speed up Arm's entry into the data center.
Traditionally, NVIDIA chips have been used as accelerators for current Intel or AMD processors, which reduces some processor computations and speeds up the entire computer system.
By making its own processor, Nvidia is directly competing with Intel and AMD for the first time.
The Nvidia CEO described the new server chip as the last piece of the puzzle that, along with NVIDIA's graphics and network chipsets, forms the basis of a modern data center.
The company announced that the Grace server processor will be released in 2023 and is designed for tasks such as training AI algorithms.
Nvidia is well-known for its graphics chipset that can improve your video game play. Over the past few years, the company has focused on artificial intelligence, which helped its market value overtake Intel and become the largest semiconductor company in the United States.
Nvidia also said: The Swiss Supercomputing Center plans to build a new supercomputer called Alps with Hewlett-Packard's new Grace processor.
Nvidia acceleration chips continue to support Intel and AMD processors, even in the same market.
The company is committed to using the accelerator chip with Arm processor for one year and with Intel and AMD processors for next year.