Image: © FP Creative Stock/Stock.adobe.com
Nvidia saw its net income grow by more than 1,250pc in the last quarter, but other companies plan to challenge its control of the AI chips sector.
Nvidia is continuing to enjoy a revenue surge in its third fiscal quarter of the year, thanks to its dominance in the AI chips market.
The company’s latest quarter saw revenue rise to $18.12bn, a 34pc increase from the previous quarter and more than 200pc higher than what it made in the same period last year.
Nvidia’s data centre sector was the biggest contributor to this increase, reaching revenues of $14.51bn, a 279pc increase compared to the same quarter last year.
The company’s record revenue also led to a staggering increase in its net income for the quarter. Nvidia made more than $9.2bn in net income for its latest quarter, a year-on-year increase of 1,259pc.
Nvidia founder and CEO Jensen Huang said its strong growth reflects the broader transition companies are making from “general-purpose to accelerated computing and generative AI”.
“Large language model start-ups, consumer internet companies and global cloud service providers were the first movers, and the next waves are starting to build,” Huang said.
“Nations and regional CSPs [communications service providers] are investing in AI clouds to serve local demand, enterprise software companies are adding AI copilots and assistants to their platforms, and enterprises are creating custom AI to automate the world’s largest industries.
“Nvidia GPUs, CPUs, networking, AI foundry services and Nvidia AI enterprise software are all growth engines in full throttle. The era of generative AI is taking off.”
Challengers to Nvidia
Nvidia has gained a dominant hold in the AI chips market, which contributed to the company becoming the first chipmaker to be valued at $1trn in May.
In August, Nvidia reported record sales of $13.51bn in its second fiscal quarter of 2023. This was also driven largely by its data centre business, which is responsible for the Nvidia A100 and H100 chips that are crucial for generative AI.
But it hasn’t all been sunshine for the company, as one of its offices was reportedly raided last month by French authorities due to suspected “anticompetitive practices”.
Meanwhile, other companies are taking steps to challenge Nvidia’s dominance in the AI chips market. Earlier this month, Microsoft unveiled its own custom silicon chips that are designed for AI tasks. Microsoft also contributed to the $110m funding round of AI chip start-up d-Matrix, which aims to launch its own AI chip in 2024.
10 things you need to know direct to your inbox every weekday. Sign up for the Daily Brief, Silicon Republic’s digest of essential sci-tech news.
