Nvidia is creating a dedicated unit for designing custom chips for cloud computing companies and other sectors, aiming to tap into the growing market for tailor-made AI chips and protect its dominance.
The demand for custom chips in data centers is projected to reach $10 billion this year and double by 2025, presenting a significant opportunity for Nvidia in this market.
Nvidia's entry into the custom chip market poses a challenge to competitors like Broadcom and Marvell, which currently lead in custom silicon design for data centers.