Stephen Nellis and Max A. Cherney of Reuters report that at Nvidia’s annual software developer conference, CEO Jensen Huang will be defending the company’s dominance in the face of pressure from major customers to reduce costs in artificial intelligence. The conference follows the emergence of China’s DeepSeek, which showcased a competitive chatbot requiring less computing power than its rivals, causing Nvidia’s stock to drop. Nvidia’s revenue has soared over the past three years due to selling high-cost chips, but challenges loom as the AI market shifts towards “inference.”
Nvidia is expected to introduce a new chip system named Vera Rubin at the conference, set for mass production later this year. The company faces competition in the inference market, where new players are vying for market share by offering more cost-effective solutions. Nvidia’s chips are known for their high power consumption, prompting exploration of alternative energy sources like nuclear reactors.
While Nvidia holds a strong position in AI training, it faces increasing competition in inference computing. Startups and traditional rivals are working on alternatives to Nvidia’s offerings, aiming to provide efficient solutions at a lower cost. However, Nvidia argues that its focus on a new type of AI called “reasoning” gives it an advantage, as reasoning chatbots utilize more computing power, a strength of Nvidia’s chips.
Beyond chatbots, Nvidia is exploring opportunities in quantum computing and other computing markets. The company aims to leverage advancements in AI to enhance robot functionality. The potential growth of the inference market presents opportunities for Nvidia to expand its revenue despite facing increased competition.
The technology has advanced significantly closer to being practical, leading Nvidia to dedicate an entire day of its conference to discuss the state of the quantum industry and the company’s future initiatives. CEO Huang will present the keynote address on Tuesday. Additionally, Nvidia is working on developing a central processor chip for personal computers, a project first disclosed by Reuters and officially revealed by Nvidia in January. Independent technology industry analyst Maribel Lopez remarked, “It could potentially impact Intel’s remaining market share.” (Reporting by Stephen Nellis and Max Cherney in San Francisco; Editing by Andrea Ricci)
