Nvidia secures AI processor supply deal
Nvidia announced that it has secured a contract to supply central processing units (CPUs) to a startup specializing in artificial intelligence. This move indicates its success in entering the silicon market, which was previously dominated by Intel and AMD. The company Modal will begin using Nvidia's new Vera processor to power its AI agent systems, which previously relied on chips from the competing firms. Tests have shown that the new processor doubles the workload capacity of AI systems, and this shift may require significant software changes in Modal. Nvidia expects to generate at least $20 billion in revenue from Vera chip sales this fiscal year, as companies like OpenAI, Atrópik, and Oracle continue to depend on it. This reflects a substantial expansion in the AI market, valued at approximately $200 billion.
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