The custom chip market was worth $30 billion in 2023 and is expected to grow significantly in the coming years. Nvidia's entry into this market could negatively impact other manufacturers. The company is also reportedly in talks with businesses in the telecommunications, automotive, and video game industries. Nvidia's success has been partially due to a limited supply of its chips, which companies have been scrambling to buy to build and train their own AI models.
Key takeaways:
- Nvidia is in discussions with tech giants such as OpenAI, Google, Meta, and Microsoft to build custom AI chips for data centers.
- This move could pose a threat to custom chip competitors like Broadcom and Marvell Technology.
- Nvidia is also planning to establish a new business division dedicated to designing AI processors for cloud computing companies.
- The company is also in talks with businesses in the telecommunications, automotive, and video game industries to expand its reach.