It is reported that NVIDIA is building a business unit focused on custom chip design support, entering the 4 trillion yen custom chip market

With the spread of AI in recent years, the share of NVIDIA's GPUs, which excel in AI processing, is rapidly expanding, and it is reported that the share of NVIDIA products in the GPU market for data centers will reach 98% in 2023. . Furthermore, NVIDIA is building a business unit to develop unique chips that can meet the specific needs of companies, and is expected to enter the approximately $30 billion (approximately 4.4 trillion yen) custom chip market. Something has been reported.

Exclusive: Nvidia pursues $30 billion custom chip opportunity with new unit | Reuters

Nvidia reportedly forms unit to peddle IP to cloud providers • The Register
https://www.theregister.com/2024/02/09/nvidia_custom_silicon/

Nvidia to Go After Custom AI Chip Market | Extremetech
https://www.extremetech.com/computing/nvidia-to-go-after-custom-ai-chip-market

Nvidia's market value has surpassed Amazon's | VGC
https://www.videogameschronicle.com/news/chipmaker-nvidias-market-value-has-surpassed-amazons/

NVIDIA has so far sold GPUs for data centers such as the NVIDIA H100 Tensor Core GPU and NVIDIA A100 Tensor Core GPU , and has rapidly expanded its share of the AI processor market.

In fact, a survey was reported in February 2024 that NVIDIA's share of the data center GPU market in 2023 reached 98%.

It turns out that NVIDIA has a monopoly of 98% share in the GPU market for data centers, and AI performance makes the difference - GIGAZINE

Just before the rise of AI, NVIDIA's market capitalization was $300 billion (approximately 44 trillion yen) as of October 2022, but NVIDIA's market capitalization, backed by its dominance in the AI field, is expected to rise in 2024. As of February 11th, it had temporarily reached $1.83 trillion (approximately 273 trillion yen). This exceeds Google's parent company Alphabet's $1.82 trillion (approximately 272 trillion yen) and Amazon's $1.8 trillion (approximately 269 trillion yen), and ranks fourth in the world after Microsoft, Apple, and Saudi Aramco . market capitalization.

Additionally, NVIDIA is said to have created a new business unit within the company to help cloud computing and other companies develop custom chips, allowing them to manufacture chips that are custom-tailored to each company's requirements. It will look like this.

GPUs for data centers such as NVIDIA's H100 and A100 certainly have high performance, but because they are general-purpose, they do not completely meet the needs of all companies. Therefore, companies such as Amazon, Google, and Meta are trying to meet their needs by developing proprietary chips that adapt to their environments. In addition, semiconductor manufacturers such as Marvell and Broadcom are engaged in the business of customizing chips for companies, and the market value of the custom chip market is said to be approximately $30 billion.

Meta reveals that it will introduce its own designed AI processor 'Artemis' to its data center in the second half of 2024 - GIGAZINE

According to Reuters, NVIDIA is holding meetings with companies such as Meta, Google, Amazon, and OpenAI to provide custom chips. It has also been reported that NVIDIA is selling custom chips to some telecommunications carriers, car manufacturers, and video game development companies.

Please note that NVIDIA's spokesperson declined to comment on this report.