Nvidia, a chip designer, is seeing continued success with the rise of generative artificial intelligence. The company has benefited from increased demand for its graphics processors as Big Tech companies deploy chatbots and now hopes to capitalize on new AI models capable of creating videos and engaging in human-like voice interactions.
CEO Jensen Huang believes the next big opportunity lies in AI systems that can process information in video and physics-based formats. Nvidia’s Grace Hopper chips, such as the H200 used in OpenAI’s GPT-4o model, have seen high demand as AI systems require more computing power to train and run effectively.
Companies like Google DeepMind and Meta Platforms have also introduced AI image and video generation platforms, further driving demand for Nvidia’s products. The chipmaker recently reported strong quarterly revenue growth, prompting a 9% rally in its stock price and boosting the overall semiconductor sector.
Derren Nathan, head of equity research at Hargreaves Lansdown, notes that the demand for large language models that can understand various media formats like video, text, voice, and images is increasing. This trend is particularly significant in the automotive industry, where Nvidia chips are used in AI training for autonomous driving.
Nvidia CFO Colette Kress highlighted Tesla’s use of their processors for AI training, with the automotive industry expected to be a major focus for Nvidia’s data center business this year. With video generation expanding beyond content production, Hargreaves Lansdown’s Nathan sees it as a strong and growing application for AI technology.
Overall, Nvidia’s success in the AI space is driven by the growing demand for advanced AI models capable of handling various media formats. As the company continues to innovate and supply chips for these applications, it is well-positioned to capitalize on the expanding AI market.
In conclusion, Nvidia’s success in the AI market is fueled by the growing demand for advanced AI models capable of handling various media formats. With an increasing focus on video generation and other multimodal AI applications, the company is well-positioned to continue its growth in this space.
Article Source
https://finance.yahoo.com/news/nvidia-ceo-huang-expects-ai-113518538.html
