All about Nvidia's new business unit: custom chip design for cloud computing companies

Components giant Nvidia continues to lead the forefront of innovation by driving your AI and cloud computing strategies. With a solid reputation in the industry, the company would be planning its new business plan. One whose objective is to redefine the landscape of custom chip manufacturing for its staunchest allies.

This new focus on creating advanced solutions is part of the company's efforts to get ahead in the AI ​​chip manufacturing and cloud computing race. With the aim of providing users with a more productive and accessible experience, investing in the research and development of cutting-edge technologies. A future where technological solutions are accessible to everyone.

Nvidia embarks on the creation of a new business unit

According to anonymous sources, Nvidia would be in the process of building a new business unit focused on the design of chips dedicated to companies. Specifically, focused on cloud computing and other similar solutions. A strategic initiative that seeks to tap into the same custom chip market focused on advanced AI processors.

Currently, Nvidia already has a solid reputation in the field of AI. Thanks to its H100 and A100 chips, becoming widespread and multi-purpose AI processors for many of its customers. However, sources indicate that the manufacturer has more ambitious plans.and will seek to collaborate closely with allied companies. This in order to develop chips aimed at cloud computing applications.

“If your goal is to maximize energy efficiency or reduce costs for your application, you can't afford to use an H100 or an A100 in that specific case. (…) If your goal is to maximize energy efficiency or reduce the costs of your application, you cannot afford to use an H100 or an A100 in that specific case.” —Said Greg Reichow, Partner at the venture capital firm Eclipse Ventures—.

More compact and specialized chips for AI and cloud computing

The microchip market became a competitive sector, not only due to the influence of AI, but also due to cloud computing. This is why leading companies in this segment, such as Microsoft and OpenAI, turn to Nvidia for the development of their hardware. Thus, combining the experience and long history of the manufacturer with the advancement of new technologies, becoming a strategic partner.

However, despite the collaboration with Nvidia, some of these companies make the decision to develop their own chips to satisfy internal needs. The reason behind this is to create more compact and specialized language models, capable of executing a specific task exceptionally. These chips allow you to optimize performance in specific applications, which in turn gives you greater control over the process and results.

In view of this, Nvidia would be holding meetings with company representatives such as Amazon, Meta, Microsoft, Google and OpenAI. To explore the possibility of manufacturing custom chips designed specifically for their cloud computing architectures. An initiative that also extends to its clients in the telecommunications, automotive and video game industries.

Nvidia's leadership in AI and cloud computing adoption

As part of its market strategy, Nvidia continues to show willingness to invest in strategic alliances that boost their position in the market. A prominent example of this is its partnership with Amazon Web Services (AWS), with whom it maintains an exclusive reseller relationship. This collaboration allows you to make the most of your range of products and processors.

Likewise, it continues to lead towards greater adoption of AI and cloud-computing applications in various industries. These range from the creation of autonomous systems that transform sectors such as logistics and autonomous driving. Not to mention the development of AI platforms that improve the diagnosis and treatment of diseases.

Currently, Nvidia's position in the high-end chip market, has a participation of 80%. Hence, the company has experienced impressive growth in recent months, reaching a market value of approximately US$1.73 billion. We just have to wait to find out official details about Nvidia's new strategy focused on cloud computing chips.