Nvidia’s Huang Seeks to Make Chipmaker a One-Stop Shop for Data Centers – WSJ By Investing.com

Nvidia (NASDAQ: ) Chief Executive Jensen Huang is pushing the company’s strategy to become a comprehensive supplier of data center components, including software, network technology and design services, with the goal of strengthening its leadership position in artificial intelligence (AI). ), according to the Wall Street Journal.

The boost comes amid a recent earnings report that saw Nvidia beat Wall Street expectations and came shortly after rival Advanced Micro Devices (NASDAQ: ) unveiled its nearly $5 billion acquisition of ZT Systems, a data center design and manufacturing firm.

Nvidia is leveraging its dominance in the AI ​​chip market, where it has more than 80 percent market share, to offer a more integrated suite of products and services for what Huang calls “AI factories.”

These are the data centers that develop and run AI tools like OpenAI’s ChatGPT. Huang’s vision is to transform Nvidia from a simple hardware supplier into a one-stop shop for all data center essentials, according to the WSJ.

The company’s strategy involves leveraging its proprietary software, CUDA, which has been the cornerstone of its success for 17 years. CUDA allows developers to harness the power of Nvidia GPUs for computational tasks.

Furthermore, Nvidia is investing in InfiniBand, a high-speed networking protocol that is widely used in AI training. Nvidia acquired Mellanox (NASDAQ: ) Technologies, the leading maker of InfiniBand equipment, five years ago for nearly $7 billion.

Nvidia is also venturing into AI-optimized Ethernet services, which are expected to generate significant revenue over the next year, according to CFO Colette Kress.

This service is part of Nvidia’s broader range of data center products, including CPUs and networking chips designed to work cohesively. The company tailors its offerings to meet the specific needs of various industries, such as healthcare and robotics, by providing specialized software and hardware setups.