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NVIDIA knows that AI is the future.
(Image source: Shutterstock)
Despite stiff competition, Nvidia has managed to maintain its lead in the global market for artificial intelligence (AI) chips used in the cloud and data centers.
According to a new report from technology research firm Omdia, Nvidia has managed to maintain a huge gap between itself and other companies, with Omdia data showing that Nvidia accounted for 80.6% of the market share in global AI chip revenue in 2020.
Nvidia generated $3.2 billion in revenue last year, up from $1.8 billion the year before. Most of that comes from GPU-derived chips, which Omdia says are the leading type of AI processors used in cloud and data center equipment.
Whether Nvidia can maintain its dominance in the future remains to be seen, as Omdia expects the AI processor market to grow rapidly and attract many new suppliers. Last year, global market revenue for cloud and data center AI processors grew 79% to $4 billion. By 2026, Omdia expects market revenue to grow ninefold to $37.6 billion.
For Jonathan Cassell, principal analyst for advanced computing at Omdia, one of Nvidia's advantages over the competition is its familiarity among customers.
Jonathan Cassell noted: "Nvidia's Compute Unified Device Architecture (CUDA) toolkit is almost universally used by the AI software development community, which gives Nvidia's GPU-derived chips a huge advantage in the market."
However, Omdia predicts that other chip vendors will gain significant market share in the coming years as market acceptance of alternative GPU-based chips and other types of AI processors increases.
Omdia believes that Xilinx, Google, Intel and AMD are the biggest competitors for Nvidia to take a larger share of the huge AI market pie. Xilinx provides field programmable gate array FPGA products, Google's tensor processing unit (TPU) AI ASIC is widely adopted in its own hyperscale cloud operations, and Intel takes the form of its Habana AI proprietary core AI ASSP and its FPGA products for AI cloud and data center servers.
AMD, currently ranked fifth, provides GPU-derived AI ASSPs for cloud and data center servers.
At present, these are Nvidia’s important competitors in the AI market.
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