NVIDIA under CEO Jensen Huang is focusing on maintaining its dominance in AI chips, transitioning from a gaming-centric to a data center-focused company. The company is forming partnerships with PC makers and cloud providers to tap into new markets for its AI chips, which boast superior performance and operating costs compared to competitors. With an 80% market share in AI chips, Nvidia is leveraging its wide availability through major cloud providers and computer manufacturers to attract developers and customers, solidifying its platform’s value.
In response to growing competition in the AI chip market from both established companies and startups, Nvidia is working to sustain its market share by continuously evolving its products to meet customer needs. The company’s success is reflected in its rising market capitalization and profitability, with recent profits surpassing Wall Street expectations and revenue growing by 18% in the last quarter. As the demand for AI chips escalates, big tech companies like Microsoft and Apple are also investing in custom chips to enhance efficiency and reduce costs in AI applications.
The rapidly expanding AI chip market is becoming more crowded, leading to heightened competition among companies vying for a piece of the industry’s growth. Nvidia’s proactive approach to innovation and strategic partnerships positions it well to solidify its leadership in AI chips and capture opportunities in the evolving landscape of artificial intelligence technology.
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https://www.pymnts.com/artificial-intelligence-2/2024/nvidia-targets-partnerships-value-to-retain-ai-chip-market-share/