Nvidia Corp., the world’s most valuable chipmaker, is set to release an update to its H100 artificial intelligence processor that will enhance its capabilities and solidify its position as a powerhouse in the AI computing market.
The new model, called the H200, will feature high-bandwidth memory, or HBM3e, allowing it to handle the large data sets required for AI development. Amazon.com Inc.’s AWS, Alphabet Inc.’s Google Cloud, and Oracle Corp.’s Cloud Infrastructure have all committed to using the new chip starting next year.
The current version of Nvidia’s processor, known as an AI accelerator, is highly sought after in the tech industry, with technology heavyweights like Larry Ellison and Elon Musk touting their access to the chip. However, increased competition is on the horizon, with Advanced Micro Devices Inc. launching its rival MI300 chip and Intel Corp. claiming its Gaudi 2 model is faster than the H100.
Nvidia’s goal with the H200 is to keep up with the expanding size of data sets used in AI models and services. The enhanced memory capability will significantly increase the speed at which the H200 processes data, allowing for more efficient training of AI for tasks like image and speech recognition.
Dion Harris, who oversees Nvidia’s data center products, emphasized the need for the company to continuously introduce the latest technology to keep pace with the evolving market. The H200 is expected to be adopted by major computer makers and cloud service providers in the second quarter of 2024.
While Nvidia initially made its mark in the gaming industry, its powerful processors have garnered significant attention from data center operators, propelling the division to become the company’s most lucrative business in fewer than five years.
Nvidia’s graphics chips played a pivotal role in pioneering parallel computing, which enables a large number of simple calculations to be processed simultaneously. This innovation has led to major orders from data center companies, challenging the dominance of traditional processors supplied by Intel.
The company’s success in AI computing earlier this year resulted in a soaring market valuation, making Nvidia the first chipmaker to reach a $1 trillion valuation, surpassing industry giant Intel. However, the company has faced challenges in 2021, including restrictions on the sale of AI accelerators to China. As a result, Nvidia has been working on developing new AI chips specifically for the Chinese market.
Nvidia will provide further insight into its performance and outlook when it reports earnings on Nov. 21.
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