Nvidia is capitalizing on the intense demand for its chips, expanding into cloud services and new hardware to compete with its own customers. Customers like Amazon are so keen to acquire chips that they are inadvertently helping Nvidia compete, as reported by The Information. This high demand for Nvidia GPUs, instrumental for artificial intelligence, also poses a threat if demand were to decrease. Consequently, Nvidia has diversified by launching DGX Cloud, a cloud service that rents out Nvidia-powered servers from AWS data centers to its customers, even competing with companies like Microsoft and Amazon. Although AWS was initially reluctant, it eventually succumbed to the service due to its reliance on Nvidia chips.
Nvidia’s strategy extends to requiring customers to provide proof of expanded data center capacity to house the GPUs they purchase, while also instructing them on how to design racks specifically for Nvidia chips. This strategic move makes it challenging for customers to switch to competitors’ chips without incurring significant costs. While Nvidia and Amazon have a symbiotic relationship for now, competition looms as AWS ventures into developing its own AI chips to rival Nvidia’s offerings.
Despite Nvidia’s successful expansion making it the most valuable company globally, its quest for industry dominance may face backlash. The Justice Department reportedly plans to investigate potential antitrust violations by Nvidia, questioning whether the company obtained its leading position in high-end semiconductors through anti-competitive practices. Nvidia has not commented on these allegations.
Article Source
https://ca.news.yahoo.com/nvidia-throwing-weight-around-mdash-025448805.html