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  • Writer's pictureBy The Financial District

Nvidia Builds $30-B Custom Chip Unit For Clients

Nvidia is establishing a new business unit dedicated to designing customized chips for cloud computing firms and others, including advanced artificial intelligence (AI) processors, as reported by Max A. Cherney and Stephen Nellis of Reuters.

Nvidia is also developing internal chips tailored to specific needs. I Photo: NVIDIA

As the dominant global designer and supplier of AI chips, Nvidia aims to tap into the rapidly growing market for custom AI chips and safeguard its position against increasing competition.

The company, based in Santa Clara, California, currently controls about 80% of the high-end AI chip market.

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Nvidia seeks to aid companies in developing custom AI chips, a trend that has seen rival firms like Broadcom and Marvell Technology attract customers.

Nvidia's major customers, including OpenAI, Microsoft, Alphabet, and Meta Platforms, have been rushing to acquire its chips for the burgeoning generative AI sector.

While Nvidia's H100 and A100 chips serve as general-purpose AI processors for these clients, they are also developing internal chips tailored to specific needs. This move aims to enhance energy efficiency and potentially reduce costs and design time.

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