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The first question AI chipmaker Nvidia CEO Jensen Huang had to answer at its annual shareholder meeting on Wednesday was how the company will handle increasing competition.
Nvidia is the clear leader in the AI chip market. 80% As market share expands, competition is intensifying. Intel and Am And start-ups etching, Celebrasand D Matrix Competing for space in a highly profitable space Billions.
About 40% of Nvidia’s revenue comes from Believed There are only four companies developing AI chips: Microsoft, Meta, Amazon, and Alphabet, all of which have the means to fully develop their own AI chips in the future.
Related: Nvidia’s longtime employee is a ‘semi-retired’ billionaire
That means Nvidia’s current customers could one day become its biggest competitors.
Hwang spoke about competitive threats on Wednesday without naming any specific rivals. In response to a shareholder question, he said Nvidia’s strategy is to make AI chips with the “lowest total cost of ownership.”
Those five words don’t necessarily refer to Nvidia chips. Fee More than $30,000 per person Cheapest It’s on the market.
Rather, when potential customers consider performance, the chip’s operating costs and its broad range, Nvidia’s chips may offer the “lowest total cost” overall.
“The NVIDIA platform is broadly available across every major cloud provider and computer manufacturer, creating a large and attractive installed base for developers and customers. This makes our platform even more valuable to our customers,” Huang said. CNBC.
Nvidia CEO Jensen Huang (Photo: SAM YEH/AFP via Getty Images)
Nvidia chips have been around for about 30 years, but until recently Graphics Card.
Huang believed the chip could do much more: In 2016, he asked his team to use it to build an AI server. in the end The server, which is about the size of a briefcase, cost $129,000 to build, and he then gave it to OpenAI as a gift.
Tens of thousands of Nvidia chips currently Power ChatGPT by OpenAI.
At the conference, Huang emphasized that Nvidia is ahead in AI chips because it began investing in them 10 years ago, pouring in billions of dollars and deploying thousands of engineers.
That first-mover advantage has paid off: Nvidia is now one of the world’s most valuable companies, valued at $3.338 trillion last week.
Related: Amazon joins Apple, Nvidia, Microsoft and Alphabet in $2 trillion club