NVIDIA cuts a ‘dash’ in the AI space

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NVIDIA has announced its fourth quarter results with revenues topping $6 billion, down 21% from a year ago but up 2% from the previous quarter.

Over the course of 2023, NVIDIA saw revenues of almost $27 billion, flat from a year ago.

Artificial intelligence is playing an increasingly important part in the business and as the boom in AI starts to accelerate, analysts expected NVIDIA to emerge as one of the biggest winners among chipmakers having focused on the technology.

AI has become increasingly important for the tech industry, where slowing growth has led to widespread layoffs and a cutback on experimental bets.

"AI is at an inflection point, setting up for broad adoption reaching into every industry,” said Jensen Huang, founder and CEO of NVIDIA. “From start-ups to major enterprises, we are seeing accelerated interest in the versatility and capabilities of generative AI.

“We are set to help customers take advantage of breakthroughs in generative AI and large language models. Our new AI supercomputer, with H100 and its Transformer Engine and Quantum-2 networking fabric, is in full production.

“Gaming is recovering from the post-pandemic downturn, with gamers enthusiastically embracing the new Ada architecture GPUs with AI neural rendering,” he said.   

NVIDIA is also partnering with leading cloud service providers to offer AI-as-a-service that provides enterprises access to NVIDIA’s AI platform.

Customers will be able to engage each layer of NVIDIA AI - the AI supercomputer, acceleration libraries software or pretrained generative AI models - as a cloud service.

Commenting on the company’s results Lei Qiu, a technology fund portfolio manager at AllianceBernstein, said, "While it is hard to pinpoint exactly how big AI is today as a percent of (NVIDIA’s) revenue, it has the potential to grow exponentially as large tech companies race to develop similar types of AI applications.”