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| NVIDIA introduces new technology to accelerate artificial intelligence |
Nvidia has announced new chips and technologies that increase the computational speed of increasingly sophisticated artificial intelligence algorithms and increase competition from competing chip makers competing for the data center market.
The company has benefited greatly from the AI boom in the past decade. Its GPUs are proven to be compatible with popular data-intensive deep learning methods.
The company provided details of a new graphics chip at the heart of its artificial intelligence infrastructure, and unveiled the H100 chip and a new processor chip called Grace Superchip, based on British ARM chip technology.
This is NVIDIA's first ARM-based chip since it stopped buying ARM last month.
Nvidia also announced its new supercomputer Eos, which it says will be the world's fastest artificial intelligence system when it goes live later this year.
“Data centers have become AI factories because they process huge amounts of data to generate intelligence,” the company’s CEO said at the AI Developers Conference. He also described the H100 chip as the infrastructure engine for artificial intelligence.
The company said the new technology could help reduce computation time from weeks to days for some of the work involved in training AI models.
Companies are using AI and machine learning for everything from recommending the next video to watch on TV and mobile to discovering new drugs.
It is clear from the announcement that Nvidia is becoming a greater threat to Intel and AMD in the data center and cloud computing markets.
Intel is the largest manufacturer of processors for data centers. But it has seen increasing competition for the fast-growing space.
NVIDIA relies on artificial intelligence
Nvidia hopes to continue monetizing its software business in the future. Its open source software is the main driver behind the company's use of its chips.
"We sell hundreds of millions of dollars of software to our organizations," the company said. We think this is a growth opportunity for us.
In addition, the software busines contributes to improving the gross margin. While chip component shortages and supply bottlenecks are driving up costs.
"Auto market software is the most important driver of the future," said the company's CEO. Cars are going to be our next billion dollar business.
The company also began shipping the Drive Orin self-driving car computer that month. Chinese electric car maker BYD and luxury electric car maker Lucid Motors are using Nvidia engines for their next-generation fleets.
A $11 billion auto deal is in the pipeline over the next six years. That was more than the $8 billion the company had expected last year. The expected increase in revenue comes from higher recurring hardware and software revenue from NVIDIA.