"Nvidia has only attained household-name status recently, but it's the opposite of an overnight success. For decades, the company was mostly known for designing graphics processor units, or GPUs, for gaming, a market it eventually dominated. More recently, Nvidia's longtime investment in applications beyond gaming started to bear fruit. First, crypto miners started hoarding Nvidia hardware, giving the company a surprise boost. Then, the company's early alignment with GPU-hungry AI firms really paid off, turning it into arguably the biggest beneficiary of the recent boom."
"The global AI-driven data center buildout has pushed Nvidia's quarterly revenue from around $13 billion when ChatGPT was released to more than $165 billion; currently, by market cap, it's the most valuable company in the world. This is all wonderful news for Nvidia founder and CEO Jensen Huang, as well as the company's shareholders. Things are a bit more complicated for Nvidia's major customers, whose all-in bets on AI depend on, among many other things, getting sufficient allocations of hardware from a single company"
Nvidia transitioned from a long-standing focus on gaming GPUs to become central to AI infrastructure. Crypto miners temporarily boosted hardware demand, and early alignment with GPU-hungry AI firms produced outsized gains. Rapid AI-driven data center expansion increased quarterly revenue from roughly $13 billion at ChatGPT's launch to over $165 billion, making Nvidia the world's most valuable company by market cap. Major customers face dependence risks from a single supplier with substantial pricing power. Google, Amazon, and Meta are investing in internal chips and infrastructure to support alternative hardware. China enacted a broad Nvidia hardware ban to spur domestic competition. OpenAI is both a major Nvidia customer and investor, creating close, co-dependent ties.
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