Although it has not been able to overthrow Intel’s leadership in the personal computers market, NVIDIA is the undisputed leader when it comes to artificial intelligence chips. According to the news, the company is evaluating its fortune in different market openings rather than sitting on its throne. The company, which we heard was working on ARM-based processors in the past months, is now working in an area where its competitors have not stepped into.
The company will design customized chips for segments in this field, including cloud technologies, game consoles and artificial intelligence processors. In order to overcome this mission, a unit dedicated solely to this will be created. With this move, NVIDIA is trying to defend its position in the rapidly growing artificial intelligence chip market.
It is filling the market share before its smaller competitors take over.
NVIDIA, which is in a very advantageous position compared to its smaller competitors, especially when we look at it from the financial side, decided to adapt to competitors such as Meta and Microsoft who were trying to produce their own chips in the artificial intelligence race. In this context, it will produce special chips according to the preferences of its customers.
NVIDIA’s two biggest competitors in custom chip production are Bradcom and Marvell Technology. Time will tell what kind of situation NVIDIA will take against these duo, which are currently offering solutions to companies. Because details such as the size of this part to be established within the company have not been disclosed yet.
The custom chip market accounted for 5 percent of the global chip market in 2023 and was worth $30 billion. NVIDIA also rolled up its sleeves early to not miss this opportunity.
However, according to rumors, NVIDIA has already discussed special chip offers with Amazon, Meta, Google, Microsoft and OpenAI. This indicates that official announcements are close. What do you think NVIDIA’s position will be in the custom chip division? Will it be able to make giants such as Meta and Microsoft its customers in this field?