Artificial Intelligence: NVIDIA’s Blockbuster A100 Chip Is The Preferred Workhorse For AI Such As ChatGPT

February 24, 2023 | Artificial Intelligence, News

NVIDIA controls about 80% of the market for these specialized (GPU) chips.

Despite a 21% decline in overall sales, Nvidia (NASDAQ: NVDA) said its AI chip business, reported as data centers, rose by 11% and generated sales of over $3.6 billion in the fiscal fourth quarter. This growth in the company’s AI chip business contributed to the company’s shares rising 14% on Thursday, outperforming the S&P 500 and other semiconductor stocks with a 65% increase so far in 2023. (CNBC)

During a call with analysts, Nvidia CEO Jensen Huang emphasized the importance of artificial intelligence to their strategy and highlighted the recent boom in AI infrastructure and inferencing using their Hopper and Ampere chips.

Huang stated that the last 60 days have dramatically changed their views on the year ahead, with a significant increase in activity around these chips and their influence on large language models.

Nvidia’s Ampere chip is its code name for the A100 generation of chips, while Hopper is the code name for the new generation, including H100, which has recently started shipping.

The company’s continued investment and growth in AI infrastructure and chips positions it to benefit from the AI hype cycle and the increasing demand for AI technologies.

Nvidia CEO Jensen Huang told analysts on the company’s earnings call: “ChatGPT reached 150 million people in 60, 90 days. I mean, this is quite an extraordinary thing. And people are using it to create all kinds of things. And so I think that what you’re seeing now is just a torrent of new companies and new applications that are emerging.”

The surge in the company’s stock price on Thursday boosted its market capitalization by over $70 billion, and it is now the seventh largest US firm.

Related Story:  Microsoft Extends Partnership, Invests $10B In ChatGPT

Image of A100: NVIDIA

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