Alright, so check this out – there’s some big news coming out from our friends over at NVIDIA. Apparently, they’re creating a whole new business unit just to cater to the demand for custom chips in industries like AI, game consoles, auto, and telecom. This move is all about securing their spot in the market and not giving any room for their competition to make a move.
So, NVIDIA has been diversifying its supply chain, and now it’s looking to expand into the emerging domains of the AI market. According to Reuters, they’re forming a new division dedicated to providing custom chips to their clients. It’s not really a surprise, considering other tech giants like Microsoft and Meta are also getting into the custom chip game for AI.
Now, here’s where it gets interesting – NVIDIA is looking to go head-to-head with some other big players in the custom chip game, like Broadcom and Marvell Technology. They’re even sitting down with companies like Amazon, Meta, Microsoft, Google, and OpenAI to offer them custom AI chip services. And there’s also talk of partnering with video game companies and console manufacturers.
This move is a pretty big deal, especially when you consider that the custom chip market is expected to hit $30 billion in 2023. It’s a smart move from NVIDIA to jump into this revenue stream early on, and it looks like they’re going all in. Keep an eye on these developments because it seems like NVIDIA is definitely on the rise. News Source: Reuters