Nvidia set to launch new chip that could reset the AI race, says report — Key things to know

In a major shakeup that is likely to reset the AI race, Nvidia is planning to launch a new processor as early as next month that will drastically overhaul how its customers use the technology, the Wall Street Journal reported citing people familiar with the knowledge of the matter.

The new processor is specially designed to help OpenAI and other customers build faster, more efficient tools, the report said.

Here is everything you need to know about Nvidia's new processor.

What to know about Nvidia's new processor

Nvidia is in the process of designing a new system for “inference” computing. This will allow the company's customers and their AI models to respond to queries, as per WSJ.

The new platform will be revealed at Nvidia’s GTC developer conference in San Jose in March, according to the report citing the people. It will also incorporate a chip that has been designed by startup Groq.

Inference computing has emerged as a key component of the intense AI race that the world is seeing right now. Nvidia's rivals Google and Amazon have already designed chips that can compete with the company's existing flagship systems. But now, a boom in autonomous coding in the tech workforce has triggered the need for new chips that can efficiently handle AI-related complex tasks.

The report further stated that ChatGPT maker OpenAI has already agreed to be one of the biggest customers of Nvidia's new system. Earlier this month, Reuters reported separately that OpenAI is unsatisfied with the speed at which Nvidia’s hardware can spit out answers to ChatGPT users for specific types of problems such as software development and AI communicating with other software.

It needs new hardware that would eventually provide about 10% of OpenAI’s inference computing needs in the future, Reuters reported quoting a person in the know.

This has put Nvidia under pressure, with its customers pushing for the production of inference as AI keeps unlocking new capacities everyday. Nvidia had till now been the ruler of the market with its high-end GPUs that till now were sufficient for its customers to run AI operations. Most analysts estimate that Nvidia controls 90% or more of the GPU market.

However, earlier on Friday OpenAI announced that it will be moving towards purchasing “dedicated inference capacity” from Nvidia, possibly pointing towards the new processor. Nvidia will also invest $30 billion in the ChatGPT maker. OpenAI has also signed a significant new deal where it will use Amazon’s Trainium chips.

The ChatGPT maker has discussed working with startups including Cerebras and Groq to provide chips for faster inference, Reuters reported quoting two persons in the know. But Nvidia struck a $20-billion licensing deal with AI startup Groq that shut down OpenAI’s talks, as per the report.

In September, Nvidia said it intended to pour as much as $100 billion into OpenAI as part of a deal that gave the chipmaker a stake in the startup and gave OpenAI the cash it needed to buy the advanced chips.