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NVIDIA's Ambitious Plans Amid Rising Competition

10/29/23

Editorial team at Bits with Brains

NVIDIA, the dominant GPU provider in the AI industry, is reportedly accelerating the launch of its next-gen Blackwell B100 GPUs from Q4 to Q2 2024 due to a significant surge in AI demand, as well as competitive pressure.

The company is expected to utilize high-performance DRAM from SK Hynix for its latest chips, a move that will also likely help SK Hynix cement its role as a leading semiconductor supplier in the AI industry.


The B100, NVIDIA's next-generation AI flagship graphics processing unit (GPU), is predicted to be a more powerful AI game changer than H100, NVIDIA's current highest-spec GPU.


However, NVIDIA's dominant position in the AI industry is under threat. Google is reportedly building out its own AI infrastructure, and other tech giants like Meta, Microsoft, Amazon, and Apple are also making strides in the AI space. AMD’s GPUs, Intel’s Gaudi, Meta’s MTIA, and Microsoft’s Athena are all at various stages of maturity in their software stack, and while NVIDIA still maintains the hardware lead, this gap is expected to close quickly and both AMD’s MI300 and Intel’s Gaudi 3 are launching with technically superior hardware compared to NVIDIA’s H100 within the next few months.


Despite the stiff competition, NVIDIA is not sitting idle. The company is reportedly embarking on a very ambitious multi-pronged strategy to remain atop the market for AI hardware. This includes annual updates on AI GPUs, process technology plans, DRAM speeds/capacities, PCIe 6.0, PCIe 7.0, and their ambitious NVLink and 1.6T 224G SerDes plans. If successful, NVIDIA believes this plan could potentially blow all competitors out of the water.


However, NVIDIA's business tactics have raised some anti-competitive eyebrows. The company is reportedly giving preferential allocation to firms based on several self-serving factors, including multi-sourcing plans, plans to make their own AI chips, buying NVIDIA’s DGX, NICs, switches, and/or optics.


NVIDIA's ambitious plans and strategies demonstrate the company's determination to maintain its leading position in the AI industry. However, the rising competition from tech giants and other hardware vendors may indicate a challenging road ahead. As the AI industry continues to evolve, it will be interesting to see how NVIDIA's strategies play out and how the competitive landscape continues to shape up.


Sources:

[1]https://www.semianalysis.com/p/nvidias-plans-to-crush-competition

[2] https://wccftech.com/nvidia-blackwell-b100-gpus-sk-hynix-hbm3e-memory-launches-q2-2024-rise-in-ai/

Sources

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