The Nvidia boss has made his company indispensable for the use of artificial intelligence.
(Photo: REUTERS)
The voice robot ChatGPT has sparked a race for supremacy in artificial intelligence (AI). Microsoft and Google in particular are competing for the best solutions. Away from the competition between the two giants, Jensen Huang has placed his company Nvidia in a key position.
Because Nvidia produces the computer chips that drive complex AI applications. It doesn’t matter whether it’s Microsoft, Google or other tech companies, almost all of them purchase the special chips from Nvidia.
Just recently, Huang was able to significantly exceed analysts’ expectations. Since the beginning of the year, his company’s shares have risen by around 50 percent.
Huang had geared his company towards building specialized chips for graphics applications. For a long time, his company was in a niche for computer games. Today there is no way around Huang and his chips. Because their special structure makes them perfect for complex AI problems.
It’s not just about improving search on the Internet. Huang’s chips are used in medical technology to discover new drugs. In industry, they simulate the perfect setup for a new factory. And in cars, they make networked driving and, in the future, perhaps also further developed autopilots, possible in the first place.
Just before Huang spoke to analysts about Nvidia’s business figures on Wednesday, he rushed to an event with Mercedes boss Ola Källenius. The chips for the new cars of the traditional German brand also come from Nvidia. Even more: In the future, Nvidia will receive part of the sales proceeds of every Mercedes car equipped with Nvidia’s AI chips.
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The success of Nvidia and Huang is remarkable. The chip industry has experienced several crises. Pioneer Intel stumbles. But Nvidia seems unaffected.
Nevertheless, Nvidia is not irreplaceable. The car manufacturer Tesla originally relied on the chips from Nvidia, but then began to prefer to manufacture the chips for its vehicles itself.
Although Huang has opened up many new future industries, the company still depends heavily on the old business with graphics chips for computer games – and this market is under massive pressure.
Huang has embarked on the right path for a lucrative future for his company. Now he just has to walk it successfully.
More: Nvidia exceeds expectations – share rises more than eight percent