It turns out that NVIDIA has a monopoly of 98% share in the GPU market for data centers, resulting in AI performance separating the bright and dark

With the spread of AI, which requires enormous processing power, large companies are all scrambling to secure GPUs with high computing power, and NVIDIA's products, which are particularly strong in AI processing performance, are in short supply worldwide. A survey has been published showing that NVIDIA's share of the GPU market for data centers will reach 98% in 2023, driven by its dominance in the AI field.

Analysts Estimate Nvidia Owns 98% of the Data Center GPU Market | Extremetech
https://www.extremetech.com/computing/analysts-estimate-nvidia-owns-98-of-the-data-center-gpu-market

AMD announces it has preorders for $3.5 billion of its AI GPUs; stock tumbles in after-hours trading anyway | Tom's Hardware
https://www.tomshardware.com/pc-components/cpus/amds-announces-it-has-orders-for-dollar35-billion-of-its-ai-gpus-but-the-stock-tumbled-in- after-hours-trading

An overview of the GPU market for data centers compiled by financial research company Wells Fargo Equity Research was posted on X (formerly Twitter) by Microsoft employee Eric Flaningham. As a result, NVIDIA's share rate in this market was recorded at 98%, overwhelming its competitors AMD and Intel.

Estimated Data Center GPU Market Share:

There's a lot of talk about the future of data center GPUs and competition for $NVDA .

Based on estimates from Wells Fargo Equity Research, $NVDA currently has a 98% market share in data center GPUs.

That number is projected to drop to… pic.twitter.com/J8KUgiawNV

— Eric (@EricFlaningam) January 29, 2024

According to the survey results, NVIDIA's sales of GPUs for data centers in 2023 will be $37.2 billion (approximately 5.522 trillion yen), and in 2024 it will generate revenue of $45.7 billion (approximately 6.784 trillion yen). It is predicted. In contrast, the revenue of the second largest AMD is said to be only 461 million dollars (about 68,425 million yen) and 2.1 billion dollars (about 311 billion yen), respectively.

NVIDIA has reported that its data center business revenue for the full year as of September 2023 is $15 billion (approximately 2.22 trillion yen), and the results of the survey announced this time indicate that the company has a strong position in the data center GPU market. It became clear how much we were improving our business results.

NVIDIA is expected to maintain its overwhelming market share after 2024, but AMD is also expected to increase its market share to some extent. According to IT news site Tom's Hardware, AMD CEO Lisa Su said in the fourth quarter and full year 2023 financial results that the AI chip ``MI300'' released in December 2023 has already been sold for 3.5 billion dollars (approximately 519 billion yen). He revealed that he had received an order for ¥200,000.

AMD breaks into NVIDIA's stronghold with AI chip 'Instinct MI300' series, OpenAI, Microsoft, Meta, and Oracle have already decided to adopt it - GIGAZINE

On the other hand, Intel says it will compete with NVIDIA's H100 and AMD's MI300 with its next AI chip 'Gaudi 3', but as shown in the graph above, it is likely that it will only regain a small share of the market, so competitors Foreign media ExtremeTech points out that it will be a long road to catch up.

In a thread on the social news site Hacker News that featured this news, a user who is the founder of IT venture Hot Aisle is thinking about AMD's comeback. According to the post , AMD's MI300X with 192GB of RAM and 8 cards has performance that greatly exceeds the previous generation MI250. Therefore, this user said, ``It is a well-known fact that AMD's software needs improvement,'' but ``I think this long-term bet is on Lisa (CEO Sue).''