Nvidia (NVDA) is on the cusp of strengthening its dominance in the supply of advanced artificial intelligence chips. The company’s Chief Executive Officer Jensen Huang reiterated they are experiencing insane demand for the next generation Blackwell Line, which is a testament to its 90% market share.
Nvidia Blackwell AI Chip
While design flaws and engineering snags delayed Blackwell’s rollout, Nvidia has moved into full production to address the strong demand. The chip giant plans to sell the new advanced AI chips as early as the end of the year. The sale of the new chips should strengthen the company’s edge amid the AI frenzy, making it even more valuable.
Nvidia has added more than $2 trillion to its market cap over the past year, which is attributed to the supply of its now famous graphic processing units, which are crucial for firms training AI models. While the company shed more than $300 billion in market value over a single day last month, it mostly came amid a profit-taking spree.
Nvidia remains on track to continue growing amid the strong demand for its chips in powering AI models. The company has delivered record-breaking revenue and earnings growth over the past year as companies turn to it to gain access to some of the most powerful AI chips.
The company has already moved to strengthen its edge and prospects in the sector, having inked a strategic partnership with Accenture. Accenture will establish what it refers to as a “NVIDIA Business Group” as part of the new agreement.
This group will employ 30,000 people and be dedicated to assisting clients in scaling the adoption of AI in the enterprise and utilizing tools like “digital agents. The company has credited $3 billion in new business to clients requesting assistance deploying Gen AI.
OpenAI $157B Value
Meanwhile, Nvidia is not the only company that has been benefiting from the artificial intelligence boom. OpenAI has closed a funding round in which it raised over $6.6 billion in a deal that values it at $157 billion, making it the most valuable startup on the planet only behind Elon Musk’s Space and ByteDance, the owner of TikTok. Since it carried out a tender offer for staff members to sell some of their shares to private investors in a deal that valued the company at about $80 billion, OpenAI’s valuation has nearly doubled.
The funding round came at a time when the AI startup has been rocked by several high-profile exits and internal conflict regarding the company’s transition from a nonprofit research facility to a manufacturer of AI products for the market. OpenAI sparked the generative AI revolution in November 2022 when it unveiled ChatGPT.
Google Launches AI Ads
Separately, search giant Alphabet’s Google has moved to strengthen its advertising empire by rolling out adverts alongside AI-generated summaries. The rollout comes on Investors expressing concerns that Google’s AI summaries, which generative AI powers, may eventually eat into the company’s lucrative search business.
The tech giant announced in May that it would begin testing advertisements in these search summaries, known as AI Overviews, and it is now making the feature available to US users of the Google mobile app.
