NVIDIA at ‘Tipping Point’ as AI Data Centre Revenue Spikes

It is reported that NVIDIA’s data centre businesses has generated the majority of the company’s revenue in recent months, on account of its AI boom

NVIDIA has surpassed all expectations within the data centre industry, hitting revenues of US$22.10bn. In particular, its data centre revenue increased by 409% to US$18.4bn.

Analysts expect that the company’s data centre unit will record US$17.06bn in sales for its fiscal fourth quarter at the end of 2024. This is due in part to NVIDIA’s AI developments rapidly increasing profits, with the company expected to reach US$2tn in value over the next five years.

“Accelerated computing and generative AI (Gen AI) have hit the tipping point,” says CEO Jensen Huang. “Demand is surging worldwide across companies, industries and nations.”

An increased demand for GPU-specialised drivers

The company has seen overwhelming and unprecedented growth in recent months, with its shares spiking at the start of 2024. It is currently one of the leading global developers of high-end AI chips, having released its H200 chip at the end of 2023 designed to train AI models.

Given the rate in which the company has grown its revenue, it is on track to becoming one of the most valuable companies in the world.

NVIDIA is now forecasting a 233% increase in its quarterly revenues for its current quarter, attesting to the power of AI. Its chips are being used by numerous big technology organisations, including Meta, Google, Microsoft and Amazon.

As a result, the company is working to build bespoke semiconductors and chips for particular clients. It was announced just this week (February 2024) that NVIDIA was collaborating with Google to launch further AI platforms on its new Gemma AI model.

Whilst the chipmaker continues to lead in AI chips, its data centre operations have also seen a huge spike. The company is already partnering with the likes of Supermicro to launch new AI systems for edge computing solutions, offering greater power and flexibility to data centres.

“Our data centre platform is powered by increasingly diverse drivers — demand for data processing, training and inference from large cloud-service providers and GPU-specialised ones, as well as from enterprise software and consumer internet companies,” Huang says.

“The year ahead will bring major new product cycles with exceptional innovations to help propel our industry forward.”

AI propels supercomputing forward

Given the fact that AI is working to transform a wide range of essential services and key industries, the demand on data centres has never been higher. As a result, industry leaders are having to consider how to keep pace in a way that eases electricity and energy burdens, but that can still generate profit and real transformation for customers.

NVIDIA has always seen AI as revolutionary for supercomputing and continues to partner with data centre companies in order to advance their offerings. 

In January 2024, it collaborated with leading provider Equinix via a managed private cloud service. It aims to enable businesses to acquire and manage their own NVIDIA DGX AI supercomputing infrastructure more easily, in addition to building and running their own custom generative AI (Gen AI) models.

From AI, to supercomputing, to data centre upgrades, it is no secret that there is plenty more to come from NVIDIA in 2024.


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