?? NVIDIA's AI advantage
Exponential View via Midjourney

?? NVIDIA's AI advantage

The current AI wave has triggered a frenzy in the tech sector. Companies recognise that LLMs may make natural language the chief interface for computer interaction . Hence, it’s no surprise that tech companies are in a hurry to develop their own Large Language Models. For this, they need hardware. In the case of AI, a particular kind of hardware is vital: an AI chip.

Meticulously designed, this chip is capable of rapidly processing data-heavy tasks with greater efficiency than conventional computer chips. The snag, however, is that it has now become the primary bottleneck in AI development.

Lisa Su, AMD’s chief executive, forecasts a surge in the AI chip market from $30 billion this year to an impressive $150 billion in 2027 .

One chip (company) to rule them all

In recent years, NVIDIA has become the undisputed leader in AI chips. In academic papers, NVIDIA chips are overwhelmingly the most referenced, accounting for a whopping 94% of AI papers that specified the use of a particular chip in 2022.

From gamers’ delight to AI’s knight

How did NVIDIA get to the summit? NVIDIA honed its expertise in creating graphics processing units (GPUs) initially designed for high-resolution gaming. However, these units unexpectedly proved excellent for training AI models. In 2006, researchers discovered that GPUs could accelerate mathematical operations using parallel processing. This computational technique performs multiple tasks at once rather than in sequence, enhancing speed and efficiency for complex data processing tasks.

Seizing this revelation, NVIDIA CEO Jensen Huang poured resources into making NVIDIA’s GPUs programmable , leading to the creation of the CUDA toolkit. This helped establish a robust software ecosystem around NVIDIA’s hardware. This ecosystem acts as a formidable barrier for competitors and has solidified NVIDIA’s position as a leader in the AI chip market.

This innovation propelled NVIDIA’s GPUs into popularity among researchers. Given that the training compute for milestone systems is growing roughly 4.2-fold annually since 2010, demand for NVIDIA’s data centre offerings has surged. Though gaming was their main revenue source for years, 2023 marked the first time NVIDIA’s data centre revenues eclipsed those from gaming .


Go deeper with our full report

Our full report is available here for members of Exponential View . You will learn:

  • How NVIDIA built a moat in the AI chip market,
  • What the competitive landscape tells us about the industry’s near future,
  • And how open-source AI development could challenge NVIDIA’s dominance.

Read the report here.


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Oliver Platt

Head of Engineering at Tab | MBA at Imperial College London

1 年

Interesting insights Azeem - despite a proliferation of Gen AI start-ups being built as thin software layers over proprietary technology, Nvidia is well poised to capture the lions share of the value. A great example of opportunism and clever pivot to a ecosystem based strategy with CUDA

Benjamin Ogden

Founder and CEO of DataGenn AI Corp

1 年

#NVIDIA rocks!

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DK Matai

??♀?????????♂??????? Servant Leader ? Queen's Award winning Innovator Quantum + AI ? Chairman: QBRAIN++ ResiLux 4IR:PEX Quantum Innovation Labs QuantumDiamond TriGold ATCA5000 Philanthropia mi2g?

1 年

HOW DOES NVIDIA COMPETE WITH QUANTUM COMPUTERS AS AI MIGRATES TO QUANTUM? 1. Google's new Quantum Computer completes a task in 6 seconds that would have taken one of the world's fastest super computers 47 years. 2. This represents a speed that's 240+ million times greater than its 2019 model and 247 million times faster than a classical super computer. 3. Previously, Google's quantum computer performed a task in 200 seconds that would have taken the world's fastest supercomputer >10,000 years! https://www.dhirubhai.net/posts/dkmatai_qc-ai-quantumcomputing-activity-7101510218647261184-IymV?utm_source=share&utm_medium=member_android #AI #QuantumComputing #Quantum

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Impressive insights into NVIDIA's domination in the AI chip market and the future outlook! ?? At Good AI Vibes, we explore AI's impact across industries in our insightful bi-weekly newsletter. Stay ahead of the curve by subscribing to join us on this AI-driven journey. ???? Subscribe now: https://goodaivibes.substack.com/

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Paul Zgordan

Co-Founder at Mubert: Generative Music AI with high-quality, ethically sourced dataset ??

1 年

A wise piece, Azeem Azhar! I believe that through gaming, widespread AI adoption may begin. Once the majority of people have experienced a highly customizable interactive experience, they will never go back to playing old games.

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