{"id":2172117,"date":"2024-02-09T10:01:02","date_gmt":"2024-02-09T15:01:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/exclusive-nvidia-chases-30-billion-custom-chip-market-with-new-unit-sources\/"},"modified":"2024-02-09T10:07:04","modified_gmt":"2024-02-09T15:07:04","slug":"exclusive-nvidia-chases-30-billion-custom-chip-market-with-new-unit-sources","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/exclusive-nvidia-chases-30-billion-custom-chip-market-with-new-unit-sources\/","title":{"rendered":"Nvidia targets $30B custom chip market with new unit &#8211; sources"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fexclusive-nvidia-chases-30-billion-custom-chip-market-with-new-unit-sources%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2172117&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p>February 9, 2024\u200d \u2013 4:45 AM PST<\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">Nvidia\u2019s Grace Hopper superchips are displayed at\u2063 Gigabyte\u2064 during COMPUTEX Taipei, one \u2063of the \u200bworld\u2019s largest computer and technology trade shows, in Taipei, Taiwan \u200dMay 30, 2023. REUTERS\/Ann Wang\/File Photo<\/figcaption><\/figure>\n<p>SAN FRANCISCO (Reuters) \u2013 Nvidia\u00a0(NVDA.O)\u00a0is\u2063 venturing into a\u2064 new frontier by establishing a dedicated business unit that specializes \u2062in creating custom chips for\u200c cloud computing \u2063companies and other clients, including\u2062 cutting-edge artificial\u2063 intelligence processors, according to nine \u200bsources familiar with the \u200dcompany\u2019s plans.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>As the dominant global leader in \u2063AI chip design and supply, Nvidia aims to seize a share of\u200d the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/indias-tata-group-mulls-pumping-2-billion-into-super-app-venture-bloomberg-news\/\" title=\"India\u2019s Tata Group mulls pumping  billion into super app venture -Bloomberg News\">rapidly expanding market<\/a>\u200c for customized \u200bAI chips and safeguard itself against \u200dthe growing number of companies\u200d seeking alternatives to its \u200dproducts.<\/p>\n<p>Based in Santa Clara, California, the company currently commands approximately \u200b80% of the high-end AI chip market, a position that has propelled its market value to $1.73 trillion, \u2063a 40% increase this year alone following a more than tripled\u2064 growth in 2023.<\/p>\n<p>Major customers such as OpenAI, Microsoft, Alphabet, and Meta Platforms have been scrambling to secure the limited supply of Nvidia\u200c chips to compete in the rapidly emerging generative AI sector.<\/p>\n<p>While Nvidia&#8217;s H100 and A100 chips serve as versatile, all-purpose AI processors for these customers, tech companies have begun developing their\u2063 own specialized chips to optimize energy consumption and reduce design costs and time.<\/p>\n<p>Now, Nvidia\u2062 is stepping in to assist these companies in \u2063creating \u2062custom AI chips, a market that has been dominated by rival firms like Broadcom and Marvell Technology, according to \u200banonymous sources familiar with the\u200b matter.<\/p>\n<p>&#8220;If you&#8217;re really trying to optimize on\u200b things like power, \u200cor optimize\u200c on \u2063cost for your\u200d application, you can&#8217;t afford to go drop an H100 or A100 in there,&#8221; said\u200b Greg Reichow, general partner at venture capital firm Eclipse Ventures. &#8220;You want to have \u200cthe exact right mixture of \u200bcompute and just\u200d the kind of \u200bcompute that you need.&#8221;<\/p>\n<p>Nvidia has been in discussions with\u200b Amazon.com, Meta, Microsoft, Google,\u200b and OpenAI\u200d to explore\u200d the possibility of creating custom chips for them, according to insiders. In addition to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nvidia-ceo-sees-large-space-for-china-sales-despite-u-s-restrictions\/\" title=\"Nvidia CEO sees \u2018large space\u2019 for China sales despite U.S. restrictions\">data center chips<\/a>, the company has also been pursuing opportunities \u200bin the telecom, automotive, and video game sectors.<\/p>\n<p>In 2022, Nvidia announced a program that allows third-party customers to integrate its proprietary networking\u2063 technology with\u2063 their own chips. However, the company has \u2064remained silent about its broader ambitions until now.<\/p>\n<p>Dina McKinney, a former executive at Advanced Micro Devices and Marvell, leads Nvidia&#8217;s custom unit, which aims\u200d to make its\u200d technology accessible to customers in the cloud, 5G wireless, video game, and automotive industries, according to her LinkedIn profile. After Reuters sought comment from \u200bNvidia,\u2064 references to these industries were \u200cremoved from her profile and her title was changed.<\/p>\n<p>While Amazon, Google, Microsoft, Meta, and OpenAI declined to comment, research \u200bfirm 650 Group estimates that the data center custom chip market will reach\u2064 $10 billion this year and double that by 2025.\u200c The broader custom chip market \u2064was\u2063 valued at approximately $30 billion\u200c in 2023, accounting for around 5% of global \u200cchip sales.<\/p>\n<p>Currently, Broadcom and Marvell dominate the custom\u200c silicon\u200c design for data\u200c centers. However, Nvidia&#8217;s entry into this space poses a significant threat\u200d to\u200d their sales.<\/p>\n<p>&#8220;With Broadcom&#8217;s custom silicon business touching $10 billion, and Marvell&#8217;s \u2064around\u2064 $2 billion, this is a\u2062 real threat,&#8221; said Dylan Patel, founder of the silicon research group SemiAnalysis. &#8220;It&#8217;s a real big negative \u2013\u2064 there&#8217;s more\u200c competition entering \u2063the \u2062fray.&#8221;<\/p>\n<p>In addition to AI, Nvidia is also \u2063exploring opportunities in other sectors.\u2064 The company is reportedly in talks with telecom infrastructure builder Ericsson \u200bfor a wireless chip that incorporates Nvidia&#8217;s graphics processing unit (GPU) technology. The telecom custom chip market\u200c is \u2062expected to remain steady\u200b at around $4 \u2062billion to $5 billion per year.<\/p>\n<p>Nvidia also \u200bhas plans to target the automotive and video game markets. Research firm 650 Group predicts that the custom auto market will experience \u2063consistent growth at a rate of 20% per year, while the video game custom chip\u2063 market, currently valued at $7 billion to $8 \u2063billion, could\u200b see an increase\u2063 with the release of next-generation consoles \u200cfrom Xbox and Sony.\u200d Nintendo&#8217;s \u2063upcoming version of\u2063 the Switch \u2063handheld console is also expected to feature a custom Nvidia\u2064 design.<\/p>\n<p>Apple is building prototypes of foldable iPhones, and Pinterest&#8217;s recent drop in stock value suggests that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/facebook-ceo-calls-for-regulations-that-would-stifle-competitors\/\" title=\"Facebook CEO Calls for Regulations That Would Stifle Competitors\">smaller social media platforms<\/a> may be losing ground \u200dto larger players \u2063in\u200d the battle for ad dollars. \u200cMeanwhile, \u2062Google is offering consumers the option to pay for enhanced reasoning capabilities\u2062 as it competes\u200c with Microsoft for subscriptions.<\/p>\n<p><sup>Reporting by Max Cherney and Stephen Nellis \u2063in San Francisco; Additional reporting by Supantha Mukherjee in \u200cStockholm and Krystal Hu in San Francisco; \u2064Editing by Kenneth Li, Peter Henderson, \u2064and Jamie Freed<\/sup><\/p>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\t \t\tShare this post!\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>President Joe Biden faces a barrage of reporter \u2064questions about his memory, and abilities to handle being Commander in Chief.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The Special Counsel report draws 25th Amendment\u2062 concerns, the Supreme Court \u2064hears Trump\u2019s\u2063 Colorado ballot case and\u2064 Imran\u200d Khan leads the Pakistan Election from prison.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>House \u200bMinority \u2063Leader Hakeem Jeffries criticizes Republicans on the\u2064 border bill and efforts to impeach Alejandro Mayorkas.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Texas Senator Ted Cruz says\u200d that Joe \u2064Biden\u2019s ban on new <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pollster-john-zogby-warns-against-a-biden-war-people-have-said-they-dont-want\/\" title=\"Pollster John Zogby cautions against a Biden war that the majority opposes\">natural gas export projects<\/a> is a &#8220;huge middle finger&#8221; to\u2062 Texas for \u2064attempting \u200cto close its\u2064 border to illegal immigration.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Nvidia\u00a0is \u200cbuilding a new business unit focused on \u200ddesigning bespoke chips for cloud computing firms and others.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Pinterest\u00a0dropped \u2064over 10% in a sign that smaller\u2062 social media platforms could be losing the battle to bigger players for ad dollars.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Google says\u200c consumers can pay for better reasoning capabilities as it vies with Microsoft\u00a0to\u2062 win subscriptions.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Apple\u00a0is \u200cbuilding prototypes of at least two iPhones that fold widthwise like a clamshell.<\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> What are the potential opportunities for Nvidia in\u200b sectors like telecom, automotive,\u2063 and\u2064 video games as it expands into the custom chip market<\/h2>\n<p><span>  \u200cNvidia Ventures into Custom Chip Market\u200c for Cloud Computing and AI<\/p>\n<p>February\u2062 9, 2024\u200d \u2013 4:45 AM PST<\/p>\n<p>Nvidia (NVDA.O) is entering a new \u2064sector by establishing a dedicated business unit \u200cthat focuses on creating custom chips for \u2062cloud computing companies and other\u200b clients,\u200d including advanced artificial intelligence processors, according to anonymous sources familiar with the company&#8217;s plans.<\/p>\n<p>As the global leader\u2064 in AI chip design and supply, Nvidia aims to capture a portion of the rapidly expanding market for customized AI chips and protect itself against the growing number of companies looking for \u200calternatives to\u200d its products.<\/p>\n<p>Headquartered in Santa\u2064 Clara, \u200cCalifornia, Nvidia currently holds approximately\u2062 80% of \u200cthe high-end AI chip market. This dominant position has propelled its market value to $1.73 trillion, a 40%\u200b increase this year alone following a significant\u200c growth in 2023.<\/p>\n<p>Major\u200b customers such as OpenAI, Microsoft,\u2064 Alphabet, and Meta Platforms \u2063have \u200cbeen competing \u200cto secure the limited supply\u200b of Nvidia chips in the emerging generative AI\u2062 sector.<\/p>\n<p>While Nvidia&#8217;s H100 and A100 chips serve as versatile, all-purpose AI processors for these customers, tech companies have begun developing\u200d their own specialized chips to optimize energy consumption and\u2062 reduce design costs and time.<\/p>\n<p>Now, Nvidia is stepping in to \u200dassist these companies in creating custom AI chips, a market that has been dominated by rival firms\u200d like Broadcom and Marvell Technology.<\/p>\n<p>Nvidia has been in discussions \u200dwith Amazon.com, Meta, Microsoft, Google, and OpenAI to\u200b explore the possibility of\u2062 developing custom chips for them. The company is also looking into opportunities\u2064 in the telecom, automotive, and\u200b video game sectors.<\/p>\n<p>In\u200d 2022, Nvidia \u2062announced a program that\u2062 allows third-party customers to integrate its proprietary networking technology with their\u2062 own chips. However, the company has remained silent \u2064about its broader ambitions until now.<\/p>\n<p>Dina McKinney, a former executive at Advanced Micro Devices and Marvell, leads Nvidia&#8217;s custom unit. Her LinkedIn profile\u200b indicated that the unit aims to \u2064make \u2062Nvidia&#8217;s technology accessible to customers in the cloud, 5G\u2062 wireless, video game, and automotive \u2063industries. However, after Reuters sought comment from Nvidia, \u200breferences to these industries were removed from her profile and her title\u200b was changed.<\/p>\n<p>While Amazon, Google, Microsoft, Meta, and\u2063 OpenAI declined to comment on the matter, research\u2064 firm 650 Group estimates that the \u2063data center custom chip \u2062market will reach $10 billion this year and double\u2062 that by 2025. The broader custom chip market was\u2063 valued at\u200b approximately $30 billion in 2023, accounting for around 5% of global chip sales.<\/p>\n<p>Currently, \u2063Broadcom and Marvell dominate the custom silicon design for data centers. However, Nvidia&#8217;s entry into \u200bthis\u200c space poses a significant threat to their sales.<\/p>\n<p>Nvidia is not only focusing on AI but is also exploring opportunities in\u200c other sectors. The company \u2063is reportedly in talks with telecom infrastructure\u200b builder Ericsson for a wireless \u2062chip incorporating Nvidia&#8217;s graphics processing unit (GPU) technology. The telecom custom chip market is expected to remain \u2064steady at around $4 billion to \u2064$5\u200b billion per year.<\/p>\n<p>Nvidia also has plans to target\u200d the \u2062automotive\u2062 and \u200dvideo game markets. Research firm\u2064 650 Group predicts \u2064that the \u2062custom auto \u2063market will experience consistent growth at\u200b a rate of 20% per year, while the video game custom chip market, currently valued at $7 billion to $8 \u200bbillion, may see an increase with the release of next-generation consoles from Xbox and Sony. Nintendo&#8217;s upcoming \u2062version of the Switch handheld \u200cconsole is also expected to feature a custom Nvidia design.<\/p>\n<p>In conclusion, Nvidia&#8217;s decision to venture into the custom chip market for \u200dcloud\u2062 computing and AI is aimed at capitalizing on \u2062the growing\u2063 demand for customized AI chips and ensuring its continued dominance in the industry. The company&#8217;s entry into this space poses a significant threat to established players and opens up new opportunities \u2064in various sectors. All eyes are now on Nvidia as it navigates this new frontier and seeks to expand its market share further.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nvidia is creating a new division to develop custom chips for cloud computing. The announcement was made during COMPUTEX Taipei, a major tech trade show, where Nvidia&#8217;s Grace Hopper superchips were showcased. The company aims to expand its presence in the cloud computing market<\/p>\n","protected":false},"author":1911,"featured_media":2172118,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/c3.oann.com\/wp-content\/uploads\/2024\/02\/VZUSW44PKZPGRBCD4HGVJZ3RFM.webp","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2172117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/c3.oann.com\/wp-content\/uploads\/2024\/02\/VZUSW44PKZPGRBCD4HGVJZ3RFM.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2172117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2172117"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2172117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2172118"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2172117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2172117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2172117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}