Nvidia relies on partnerships and values ​​to maintain market share in AI chips

NVIDIA has taken a number of Steps to maintain its dominant position in the field of artificial intelligence (AI) chips, CEO Jensen Huang said on Wednesday (June 26).

During the company’s shareholder meeting, Huang said that the company has already “transformed” from a gaming-focused company to a data center-focused company; that it is partnering with computer makers and cloud providers to create new markets for its AI; and that it offers chips that offer better value for money based on their performance and running costs than others that may be cheaper to buy, according to CNBC. reported Wednesday.

In addition, Huang said that Nvidia has reached a “virtuous circle” in which the number of customers it has enables the company to develop products that attract even more customers, the report says.

“The Nvidia platform is widely available from every major cloud provider and computer manufacturer, creating a large and attractive install base for developers and customers, making our platform more valuable to our customers,” Huang said, according to the report.

According to the report, Nvidia has a market share of over 80 percent in AI chips.

Huang’s comments on how the company is working to maintain its market share came in response to a question about growing competition in the space as both existing companies and startups bring new AI chips to market, the report said.

Nvidia has long competed with Microsoft and Apple for the title of the most valuable company in the world. Like Nvidia, these companies have also increased their stocks and her Increase in market capitalization amid the wave of investor interest that has AI boom.

In May, Nvidia reported Merits which exceeded Wall Street expectations and its own Outlook for the quarter. The company’s revenue reached $26 billion, which was 18% higher than the previous quarter and 262% higher than the same period last year.

At the same time, major technology companies are racing to develop customized chips that will increase the efficiency of AI and reduce its costs. Competition is intensifying in the AI chip market when the field becomes fuller and as Companies are competing for a share of this fast-growing industry.