On Tuesday, October 8, at the "AI Summit DC" artificial intelligence summit in Washington, D.C., the capital of United States, "AI darling" Nvidia executives said that its next-generation Blackwell chips will be shipped to customers in the fourth quarter of this year and are energy efficient.
NVIDIA: The Blackwell platform is basically built with energy efficiency in mind, and Nvidia has a number of software services
Bob Pette, vice president and general manager of enterprise platforms at Nvidia, said that "the Blackwell platform is basically built with energy efficiency in mind," and that developing OpenAI's GPT-4 software on Blackwell requires 3 gigawatts of power, up from 5,500 gigawatts a decade ago. According to some analysts, the AI computing boom has raised concerns about electricity use.
In their keynote speech, titled "The Transformative Power of Accelerated Computing and Artificial Intelligence," the executives described how NVIDIA's accelerated computing platform is delivering breakthrough performance for the next wave of AI, sensor processing, digital twins, cybersecurity, autonomous systems, and more.
He said that the world is about to see more industries adopting AI today, and AI is expected to have an impact of up to $20 trillion in all industries that utilize the technology.
He also highlighted NVIDIA's AI software services and various software platforms. Selling software is part of Nvidia's strategy to ensure that customers are not only looking for the company's sought-after AI chip processors, but also a recurring revenue stream beyond hardware sales, and by showcasing software, Nvidia hopes to prove that it's more than just a chip company:
"On the one hand, highlighting its software can attract developers to NVIDIA's products, and the more developers based on its services, the more companies will seek to use these NVIDIA software platforms.
At the same time, Nvidia faces increasing competition from long-time rivals such as AMD and Intel in the hardware space, and its customers are also developing self-developed chips to support AI software, which could hurt Nvidia's profits in the future, so the company's ultimate goal is to use software to retain customers. ”
Tuesday's AI Summit event sent Nvidia's shares up as much as 4.1% at the start of the session to their highest in three months since July 11. Nvidia has risen for five consecutive days, with a market value of $32,000, surpassing Microsoft on Monday to become the world's second-largest company by market capitalization after Apple.
Over the past month, Nvidia's stock price has been on an upward channel, rebounding more than 28% from its low since it was reported on September 6 that the United States Department of Justice was seeking to investigate it, mainly due to the company's CEO Jensen Huang and various partners calling Blackwell's next-generation AI chips "crazy demand."
Nvidia's chip foundry Hon Hai Group confirmed on Tuesday that it is building the world's largest GB200 production facility in Mexico, seen by the market as evidence of strong long-term demand for Blackwell chips.
Nvidia: It is "leading" the use of AI technology to expand to more fields, laying the foundation for a new round of industrial revolution, especially the medical industry
In terms of software progress, the company has multiple AI software platforms such as Nvidia NIM Agent Blueprints, NIM and NeMo, according to Nvidia executives today. Among them, NIM Agent Blueprints is designed to help enterprises develop generative AI applications, NIM can quickly combine chatbots and AI assistants, and NeMo provides enterprises with a way to build custom generative AI models.
Scientific research institutions ranging from United States telecommunications giant AT&T, international accounting firm Deloitte, artificial intelligence and machine learning software provider Quantiphi, to the National Cancer Institute of United States and the SETI Institute, which searches for extraterrestrial civilizations, are using NVIDIA's software technology to help employees with software development and network engineering, and even to search for signs of extraterrestrial life.
For example, AT&T is partnering with Quantiphi to create a conversational AI platform that assists employees with software development and financial services tasks. University of Florida in United States uses NVIDIA NIM and NeMo platforms to improve learning management system for teaching assistants; Deloitte uses NVIDIA NIM Agent Blueprint with its own cybersecurity products, and the National Cancer Institute of United States uses it to help reduce the time and cost of developing novel drug molecules; The SETI Institute uses NVIDIA's Holoscan software toolkit to develop software for receiving and analyzing radio waves from space.
At the same time, NVIDIA has partnered with Carnegie Mellon University and the University of Pittsburgh to establish two new AI technology community centers. The NVIDIA Center for Robotics, Autonomy, and AI, in partnership with Carnegie Mellon University, will provide students, faculty, and researchers with robotics and autonomy-related technologies, and the Center for AI and Intelligent Systems in partnership with the University of Pittsburgh will focus on AI for the health sciences.
In addition, on Tuesday, Google announced that Nvidia's Nvidia Nim is available on Google's Kubernetes engine, and TSMC is using Nvidia's computational lithography platform Culitho for production.
Nvidia executives say it is "leading" the use of AI technology to expand into more areas, laying the groundwork for a new industrial revolution. This move also includes finding more customized uses for AI:
"While tools like OpenAI's ChatGPT are often useful, they tend to repeat what we post on the internet, and such services won't find a cure for cancer or help run a specific commercial business.
Instead, people need a smaller AI model that is customized for a specific purpose. The software is part of NVIDIA's expanding line of products and services, with the overall goal of making it easier for companies to integrate everything they need to use AI. ”
In particular, the executive mentioned that AI has the potential to transform the healthcare industry in particular. Nvidia has been preparing for this shift for the past decade by developing a drug development business.
Da Mo's latest research report is optimistic about the revenue generation potential of Blackwell's strongest chips, and Nvidia expects production increases to continue from the fourth quarter to 2026
Morgan Stanley, a mainstream investment bank, also released a research report on the same day, optimistic about the potential boost to the company's revenue in the last few months of this year by Blackwell's next-generation strongest chips, and hinted that Blackwell's output will exceed the existing Hopper chips as early as early next year:
"Based on our examination of the GPU test supply chain, Blackwell chip production should be around 250,000 to 300,000 pieces in the fourth quarter, contributing $5 billion to $10 billion in revenue, which is still in line with the optimistic forecast of Joe Moore, principal analyst at Da Moore. Blackwell chip production could reach 750,000 to 800,000 pieces early next year, nearly three times more than in the fourth quarter of this year.
At the same time, we expect Hopper chip sales (including H200 and H20) to be around 1.5 million units in Q4 and gradually decline to 1 million units in Q1 2025, and given that Blackwell's B200 chip prices are about 60% to 70% higher than Hopper's H200, Blackwell's revenue should surpass Hopper in Q1 2025. ”
Another analyst also released a bullish research report on Nvidia on Monday. Ben Reitzes, an analyst at Melius Research, said that despite the long rally in Nvidia shares, "the current situation is still quite good":
"Strong spending on AI, such as Microsoft, Alphabet and ChatGPT parent company OpenAI, should continue to catalyze consumption of Nvidia's core GPU products."
Nvidia's chief financial officer, Colette Kress, predicted in August that the company would ship billions of dollars worth of Blackwell chips in its fiscal fourth quarter, which ends in January. Nvidia also recently said that it has made changes to the Blackwell GPU mask to improve production yield, and the ramp-up is scheduled to begin in the fourth quarter and continue through fiscal 2026.
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