This partnership marks Nvidia's first venture with a restaurant company and represents a strategic shift for Yum, which has previously focused on internal tech development through acquisitions. Yum will retain ownership of the AI intelligence developed, allowing for customization and integration of advanced models. While the financial terms of the partnership were not disclosed, both companies have seen stock growth over the past year, with Nvidia's market cap significantly larger than Yum's. Despite some concerns about competition and the economy, investor interest in AI remains strong.
Key takeaways:
- Yum Brands is partnering with Nvidia to implement AI technologies in its restaurants, including AI order-taking and Nvidia-powered computer vision.
- The partnership allows Yum to own and customize the AI intelligence, marking a strategic shift from its previous tech acquisition approach.
- Nvidia's collaboration with Yum is its first with a restaurant company, and the technology is expected to be rolled out to over 500 restaurants in the second quarter.
- While Nvidia's stock has risen 35% over the past year, Yum's stock has increased by 14%, with investors remaining optimistic about AI advancements.