NVIDIA Cloud Service: Is it biting the hands that feed it?

Over the last several years, NVIDIA Corporation has been successful without a doubt. Gaming revenue increased by 49 percent in its most recent quarter.

The money that NVIDIA earns from artificial intelligence, which is the data center revenue, increased by 186 percent. This made the total revenue of the company grew up to 21 percent.

The GPUs (Graphic Processing Units) of NVIDIA have provided the necessary power to train Artificial Intelligence systems. Those advances have been driving to the top along with the company. Therefore, NVIDIA will continue focusing on opportunities in the promising field.

Recently, the company announced the NGC (NVIDIA GPU Cloud). This is a platform the will offer developers with an inclusive set of software tools to train their own artificial intelligence systems. NGC will simplify and accelerate deep learning development by making it simpler for developers to perform deployment, experimentation, and deep learning training, according to NVIDIA. However, this may put the company on a collision course with the other companies that made them who they are today.

Biggest Players

Artificial Intelligence has been the companies’ field with the parts needed to make it work. First, to train the system, massive data sets were required. Next, it required unbridled, raw computing power. Lastly, to develop the software models and algorithms needed for AI to learn, it took the required expertise.

This means that only huge companies such as Microsoft Corporation, Amazon.com, Inc., and Alphabet Inc., have the required resources to create these AI systems. And somehow, they happen to be some of the biggest customers of NVIDIA. Those companies use NVIDIA’s GPUs in the AI’s realm and to power its cloud offerings. NVIDIA is submitting onto their cloudy field by offering these services.

Cloud Computing

Cloud computing is a huge business. The growth rates in that field are overwhelming. Customers will be bypassing some of the biggest customers of NVIDIA if the company entices them to come directly. This means that the company is cutting into the profits of Microsoft, Google Amazon, and Alphabet. And those three companies are the biggest ones in the industry of cloud computing.

NVIDIA’s decision will surely have consequences. Google created a tensor processing unit. The latest version of it is capable of training the AI systems. This is a job that previously required a GPU. This shows that some companies are slowly working their own chip that will soon push NVIDIA back.

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