The company's customers, including OpenAI, Microsoft, Alphabet, and Meta Platforms, have been buying up its chips to compete in the emerging generative AI sector. However, these tech companies have started to develop their own internal chips for specific needs, which can reduce energy consumption and potentially decrease the cost and time to design. Nvidia is now trying to assist these companies in developing custom AI chips, a move that could impact sales of rival firms like Broadcom and Marvell Technology.
Key takeaways:
- Nvidia is creating a new business unit to design custom chips for cloud computing firms and others, including advanced AI processors.
- The company currently controls about 80% of the high-end AI chip market, a position that has significantly increased its stock market value.
- Major tech companies, including OpenAI, Microsoft, Alphabet, and Meta Platforms, are Nvidia's customers, but they have started to develop their own internal chips for specific needs.
- Nvidia's move into custom AI chips could potentially impact the sales of rival firms such as Broadcom and Marvell Technology.