Participants in the artificial intelligence value chain can be expected to eventually begin encroaching on other roles. Much of that already is happening. Large end users already design their own acceleration chips.
And Nvidia’s business ambitions already extend far beyond being a supplier of graphical processing units and seem primarily focused on becoming a supplier of Artificial Intelligence as a Service, high-performance computing and possibly some parts of the enterprise AI solutions market.
Nvidia is not trying to be a general-purpose cloud provider like AWS or Azure and does not want to compete in general cloud hosting (compute, storage, databases) like AWS EC2, Azure Blob Storage, or Google Cloud Functions.
Nor does it want to become a supplier of enterprise solutions such as Microsoft’s productivity tools.
On the other hand, HPC and AIaaS offer lots of room for expansion within the ecosystem.
Artificial Intelligence as a Service (AIaaS) Market |
udy | Estimated Market Size (2024) | Projected Market Size | CAGR | Projection Year | Source |
Allied Market Research | $11.7 billion | $178.9 billion | 35.90% | 2032 | alliedmarketresearch.com |
Grand View Research | $16.08 billion | Not specified | 36.10% | 2030 | grandviewresearch.com |
MarketsandMarkets | Approximately $14.00 billion | $72.13 billion | 38.80% | 2029 | marketsandmarkets.com |
Precedence Research | $11.96 billion | $294.83 billion | 37.78% | 2034 | precedenceresearch.com |
High-Performance Computing (HPC) Market |
Study | Estimated Market Size (2024) | Projected Market Size | CAGR | Projection Year | Source |
Fortune Business Insights | $54.39 billion | $109.99 billion | 9.20% | 2032 | fortunebusinessinsights.com |
MarketsandMarkets | Not specified | $49.9 billion | 6.70% | 2027 | marketsandmarkets.com |
BCC Research | Not specified | $107.8 billion | 15.60% | 2028 | blog.bccresearch.com |
“AI as a service” is probably the most pointed challenge to Nvidia’s “cloud computing as a service” customers. DGX Cloud directly competes with the cloud providers’ AI “as a service” offerings.
Nvidia provides a “full-stack” AI solution based on frameworks (CUDA, TensorRT, NeMo) optimized for AI workloads.
Production of custom chips that could compete with AWS Trainium and Inferentia;
Google Tensor Processing Unit or Microsoft Maia AI chips is another potential area of competition.
Beyond that, Nvidia is selling turnkey AI supercomputers (DGX SuperPODs), which cloud providers can use to build AI infrastructure. In some cases, such clusters might be sold directly to enterprises.
Nvidia’s GeForce NOW is a niche business that competes with Microsoft’s xCloud and AWS Gamelift in the cloud gaming space.
Over time, many contestants in one part of a computing value chain have moved into adjacent areas.
Company | Original Role | Expansion Move | Adjacent Market Entered | Product/Service | Year |
Intel | Semiconductor (CPU) Maker | Launched discrete GPUs | Graphics Processing (Competing with Nvidia & AMD) | Intel Arc GPUs | 2022 |
Nvidia | GPU Maker | Developed AI Cloud Services | AI as a Service (Competing with AWS, Google, Azure) | Nvidia DGX Cloud | 2023 |
AMD | CPU & GPU Maker | Acquired Xilinx | FPGA & Custom Silicon (Data Centers, AI, Automotive) | Xilinx Adaptive SoCs & AI Engines | 2022 |
Amazon (AWS) | Cloud Services | Designed Custom AI Chips (Inferentia & Trainium) | AI/ML Hardware (Competing with Nvidia) | AWS Trainium & Inferentia Chips | 2018+ |
Google (GCP) | Cloud Services & Search | Developed Custom AI Chips (TPUs) | AI/ML Hardware (Competing with Nvidia) | Google Tensor Processing Unit (TPU) | 2016+ |
Microsoft (Azure) | Cloud Services | Launched Custom AI & ARM Chips | AI & ARM Computing (Competing with AWS, Nvidia) | Azure Maia AI Chips & Cobalt CPUs | 2023 |
Apple | Consumer Electronics | Designed Custom ARM Chips | Semiconductor (Replacing Intel CPUs) | Apple M1, M2, M3 Chips | 2020+ |
Tesla | EV Manufacturer | Developed AI Supercomputers (Dojo) | AI & Computing (Competing with Nvidia for AI training) | Tesla Dojo AI Training Cluster | 2023+ |
Oracle | Database Software | Expanded Cloud & AI Infrastructure | Cloud Computing (Competing with AWS, Azure) | Oracle Cloud Infrastructure (OCI) | 2016+ |
Meta (Facebook) | Social Media | Designed Custom AI & ML Chips | AI Hardware & Compute (Competing with Nvidia) | Meta Training & Inference Accelerator (MTIA) | 2023 |
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