Nvidia wants to become the largest CPU manufacturer in the world
Nvidia has long been at the forefront when it comes to graphics chips, but now the favorite supplier of all AI data center operators is also increasingly setting its sights on the CPU market. With expected sales of $20 billion in CPUs, Intel and AMD are expected to be overshadowed this year, they say.
Nvidia’s ‘Vera’ CPUs are said to be in high demand
Nvidia wants to overtake AMD and especially Intel and quickly become the world’s largest supplier of CPUs (Central Processing Units) in terms of sales. The company’s chief financial officer announced this yesterday as part of a conversation with investors and representatives of the financial world when Nvidia’s business figures rose sharply again. There is already “visibility” for orders for CPUs for the current fiscal year, which will represent sales of almost $20 billion, according to Nvidia’s Chief Financial Officer Colette Kress the Register during the conversation. Of course, these are primarily chips that are to be used in conjunction with the in-house graphics chips in countless data centers to process tasks in the field of artificial intelligence.
Nvidia has been offering its own CPUs for a long time, having introduced “Grace”, the first ARM-based processor for use in data centers. In March, Nvidia announced “Vera“Another independent CPU platform in which each chip with 88 custom cores based on ARM will work with simultaneous multi-threading. Because the platform is comparatively energy-saving, Nvidia is hoping for a broad introduction of “Vera” in AI data centers because their operators can achieve more performance in less space. In fact, there is great interest, as according to Nvidia, several AI operators have already had their first “Vera” CPUs just this week According to Nvidia, these include Anthropic, OpenAI, Oracle and SpaceX.
‘Vera’ makes $200 billion in sales
According to Nvidia CFO Kress, the company expects to be able to generate sales of around $200 billion in the coming years with “Vera” CPUs alone. This opens up a new market that has not yet been addressed by Nvidia. The massive demand arises primarily because the trend is increasingly towards “AI agents”. Nvidia posted sales of $81.6 billion in the final quarter of its fiscal year and made a profit of $58.3 billion. Compared to the previous year, profits were increased by 85 percent. Compared to the previous quarter alone, profits rose by 20 percent. When it comes to Kress’ statements, it should be borne in mind that when she claims that she will soon be the largest CPU manufacturer, she is not based on the number of chips sold, but rather on the revenue generated from them. In addition, AMD and Intel probably still have a say in the competition with Nvidia, after all, their sales of server CPUs are also currently rising sharply.
