Nvidia Corp’s rivals and top clients are joining forces with OpenAI to create software that enables the transition from Nvidia chips to artificial intelligence development. Despite Nvidia’s dominance in the market, competitors like Intel Corp, Advanced Microdevices Inc, and Qualcomm Inc are focusing on Nvidia’s software platform, Cuda, to attract customers, as reported by the Financial Times.
Industry experts emphasize that Nvidia’s strength lies in its Cuda software platform, which optimizes chips for accelerated AI applications, rather than just its powerful processors. Meta Platforms Inc, Microsoft Corp, and Alphabet Inc’s engineers are collaborating on Triton, a software introduced by OpenAI in 2021 to enhance code efficiency in various AI chips and reduce Nvidia’s hold on the AI hardware market.
Nvidia has heavily invested in developing a variety of software tools since introducing its Cuda software in 2006 to improve the ease and speed of running AI applications on its GPUs. This strategic focus on software is a key aspect of its business model. However, the high cost and limited availability of Nvidia’s advanced products like the H100 and upcoming GB200 “superchip” have prompted major clients such as Microsoft, Amazon, and Meta to explore alternatives or develop their own technologies.
The reliance on Nvidia’s Cuda software presents challenges for transitioning to other processors like AMD’s MI300 or Intel’s Gaudi 3. Analysts anticipate that Nvidia will see significant growth in the April quarter, with expectations of Blackwell being entirely sold out for at least a year.
Nvidia’s stock price was down 0.99% at $939.45 at last check on Tuesday. The content was partially generated using artificial intelligence tools and was reviewed and published by Benzinga editors. Please note that this article was created for informational purposes and Benzinga does not offer investment advice. Photo via Shutterstock. © 2024 Benzinga.com. All rights reserved.
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