Tech giants are developing custom chips, challenging Nvidia's dominance
fool.com —
Nvidia has dominated the AI accelerator market since the rise of ChatGPT in late 2022, benefiting from its established technology and software. The company generated over $35 billion in revenue from data center GPUs in the latest quarter. As demand for AI computing grows, tech giants like Meta and OpenAI are exploring custom AI chips to reduce reliance on Nvidia. This shift could lead to significant cost savings and increased competition in the AI hardware market. Nvidia faces potential challenges as companies develop their own AI solutions. This trend may pressure Nvidia's pricing and profit margins, especially if demand for AI computing slows down in the future.