NVIDIA
Nvidia wants a bigger slice of the AI chip pie
Nvidia CEO Jensen Huang loves a big claim, but to be fair, Nvidia keeps delivering.
The company just posted another record quarter, with $81.6 billion in revenue, and expects $91 billion next quarter.
Now, Huang says Nvidia has found a new $200 billion market with Vera, its new CPU built for AI agents.
That matters because Nvidia is best known for GPUs, while CPUs have usually been dominated by Intel and AMD.
But as AI agents become more common, Nvidia believes CPUs will play a bigger role.
Huang says GPUs handle the “thinking” part of AI, while CPUs help agents carry out tasks, use tools, and run the systems behind them.
In brief:
Nvidia says Vera could open a $200 billion market.
The CPU is designed for AI agents that complete tasks and use tools.
Big tech companies are also building AI chips, so the hardware race is getting spicy.
Agents need more silicon
Vera is built to process tokens quickly, which Nvidia says makes it better suited for agentic AI.
Competition is already heating up. Amazon, Google, and other cloud giants are also building their own AI chips, so Nvidia is not exactly strolling into an empty room.
Still, Huang says demand is already strong. Nvidia has reportedly sold $20 billion worth of standalone Vera CPUs this year.
Jensen Huang announcing another market opportunity like rent is due on the entire GPU empire.- MG