Nvidia aiming for even greater profits by launching new AI chips every year

Updated on 23-May-2024
HIGHLIGHTS

Nvidia will now design new chips every year.

This decision comes after the company made a hefty profit amounting to $14 billion (approximately).

But, previously, analyst Ming-Chi Kuo had reported that Nvidia will release its next chip "Rubin" in 2025.

Almost all the biggest tech companies around the world are currently investing in AI and most of them are even bearing successful fruits. Like I always say, we are just at the tip of the iceberg with AI right now, and there’s a long way to go. Anyway, today we are going to talk about Nvidia and how it has changed its style after the success of its AI chips.

Nvidia just announced that going forward, it will not go by its usual timeline of a release every 2 years. It released Ampere in 2020, Hopper in 2022, and Blackwell in 2024. The silicon maker will now design new chips every year. Nvidia CEO Jensen Huang said, “I can announce that after Blackwell, there’s another chip. We’re on a one-year rhythm.”

Also read: Nvidia unveils ‘world’s most powerful’ AI chip: All details here

Why did Nvidia decide this?

This decision comes after the company made a hefty profit amounting to $14 billion (approximately). That too in a single quarter. I feel that this huge profit has motivated the company to launch chips more frequently. Huang even added that the company will accelerate the production of other chips too. He said, “We’re going to take them all forward at a very fast clip,” during Nvidia’s Q1 2025 earnings call. So a lot of new chips are on their way.

But, previously, analyst Ming-Chi Kuo had reported that Nvidia will release its next chip in 2025. This might be called “Rubin” and can give us an R100 AI GPU

Also read: Nvidia’s Project GR00T will help develop AI-powered robots: Here’s how

The CEO also shared how there was an increasing demand for Nvidia’s AI GPUs. He said, “We expect demand to outstrip supply for some time, as we transition to H200, as we transition to Blackwell.”

As the AI revolution is deepening, everyone is on their toes to get their infrastructure online and to incorporate AI as much as they can, hence the growing demand.

Mustafa Khan

Mustafa is new on the block and is a tech geek who is currently working with Digit as a News Writer. He tests the new gadgets that come on board and writes for the news desk. He has found his way with words and you can count on him when in need of tech advice. No judgement. He is based out of Delhi, he’s your person for good photos, good food recommendations, and to know about anything GenZ.

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