Nvidia (NVDA) reportedly to invest $30 billion into custom AI chip manufacturing

With this investment, Nvidia is said to be attempting to get ahead of skyrocketing demand for custom chips powering AI technology.


Nvidia is already one of the most prolific chip makers and distributers in the world when it comes powering AI technology, but it may be preparing to invest substantial into the particular needs to AI tech firms and services with an upcoming investment. According to sources familiar, the company intends to invest $30 billion USD into the expansion of custom AI chip manufacturing, which will allow it to build custom components more readily to meet it customers various needs.

Nvidia’s upcoming investment into custom AI chip expansion was reported by Reuters, which claimed to have spoken to multiple anonymous sources regarding the topic. Nvidia already has control of about 80 percent of the high-end AI chip market, which the H100 and A100 chips as its main products. However, demand for custom designs has increased substantially, allowing companies to tailor chip power and capabilities to their needs, reducing total power consumption, and reducing the time it takes to manufacture said chips. Nvidia is reportedly attempting to service those needs fully in the near future instead of letting custom design business slip to other custom chip designers and businesses.

Nvidia (NVDA) stock as of February 12, 2024 at 2:56 pm ET.
Nvidia (NVDA) stock was up on the week on word of investment into custom AI chip manufacturing.
Source: Google

Nvidia’s valuation has skyrocketed alongside the hype for AI technology, with the company capitalizing on its existing work to service the needs to AI developers such as OpenAI, Meta, Amazon, Microsoft, and Google. The company has grown to the point where it exceeded a $1 trillion USD market cap for the first time in May 2023, following soon after its Q1 2024 earnings results. The company continues to be astronomically profitable alongside the AI boom and shows no signs of slowing down.

With this supposed major investment into custom AI chip manufacturing, Nvidia stands to grow that much more prominent in the artificial intelligence space. Stay tuned as we continue to watch for further confirmation and updates.

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.

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