Nvidia’s GTC 2024 conference showcased a series of groundbreaking announcements and innovations, solidifying its position in the AI and computing sectors.
Next-Generation Blackwell GPU Architecture: Nvidia introduced its next-generation Blackwell GPU architecture, promising to accelerate AI and other workloads in data centers. This update is part of Nvidia’s strategy to release new GPUs annually, moving away from its previous two-year rhythm[2].
AI Microservices: Nvidia announced new AI microservices and a plethora of offerings from partners like Dell Technologies, Amazon Web Services, and others. These services are designed to enable the fastest possible performance and accelerate the development of AI applications[2].
Strategic Partnerships and Software Tools
Partnerships with Major Cloud Providers: Cloud service providers, including Amazon Web Services, Google Cloud, and Microsoft Azure, revealed new offerings powered by Nvidia. These collaborations aim to integrate Nvidia’s advanced computing technologies into their services[2].
Software Tools for AI Model Deployment: Nvidia introduced a suite of software tools to streamline the sale and deployment of AI models for businesses. This initiative targets broadening Nvidia’s influence in the AI inference market[4].
Innovations in AI and Computing
B200 AI Chip: The B200, branded as the ‘world’s most powerful chip’ for AI, was announced. It’s designed to enhance AI model training and efficiency, making advanced AI models more accessible[4].
Generative AI and RTX PCs: Nvidia announced GeForce RTX™ SUPER desktop GPUs and new AI laptops from top manufacturers, along with RTX™-accelerated AI software and tools for developers and consumers. These innovations aim to bring generative AI capabilities to a wider audience[8].
Market Impact and Future Directions
Stock Performance and Market Share: Despite Nvidia’s stock surge by 240% over the past year, the announcements at GTC 2024 did not significantly boost investor enthusiasm, with a slight decline in stock following the presentation. Analysts predict a slight dip in Nvidia’s market share in 2024 as competition intensifies[4][5].
Focus on Compliance and Resilience: Nvidia CEO Jensen Huang emphasized the importance of compliance and resilience in serving the market in China, acknowledging the complexity of global supply chains[3].
Conclusion
Nvidia’s GTC 2024 was a landmark event, highlighting the company’s relentless innovation in AI and computing. With the introduction of the Blackwell GPUs, strategic partnerships, and new software tools, Nvidia is poised to continue its dominance in the AI market. However, the competitive landscape and market dynamics suggest that Nvidia will need to maintain its pace of innovation to sustain its market leadership[1][2][3][4][5][6][7][8].
The top individual shareholder of NVIDIA is Jen-Hsun Huang, founder and CEO of the company, with 86,878,193 shares, giving him 3.51% ownership. He is followed by Mark A. Stevens, venture capitalist and a partner at S-Cubed Capital, who was part of the NVIDIA board in 2008 and previously served as a director from 1993 to 2006, with 4,442,786 shares. Top institutional investors comprise The Vanguard Group, Inc., 204,600,119, owning 8.27%. BlackRock, Inc., with 179,816,144, owns 7.27%. And FMR LLC (Fidelity Institutional Asset Management) with 138,693,959, owning 5.61%.
NVIDIA is a GPU design company, which develops and sells enterprise chips for industries spacing from gaming, data centers, professional visualizations, and autonomous driving. NVIDIA serves major large corporations as enterprise customers, and it uses a platform strategy where it combines its hardware with software tools to enhance its GPUs’ capabilities.
NVIDIA generated $60.92 billion in revenue in 2024, compared to almost $27 billion in revenue in 2023, the same revenuevalue in 2022, and over $16.6 billion in 2021.
NVIDIA generated $13.52 billion from the graphics segment in 2024, compared to $47.40 billion from the compute and network segment. Compared to almost $27 billion in revenue in 2023, of which $15 billion came from computing and networking and $11 billion from graphics. In contrast to 2022, where $27 billion in revenue came, over $15.8 billion came from graphics and $11 billion from computing and networking. With the explosion of AI, the computing segment has become the main driver of NVIDIA’s growth.
NVIDIA generated over $60 billion by January 2024, of which $13.52 billion came from graphics and $47.4 billion from computing and networks. Compared almost $27 billion in revenue in 2023, of which over $15 billion came from competing & networking and $11.9 billion from graphics. Through its GPU, NVIDIA is powering up the AI supercomputing revolution, which is part of the current AI paradigm.
NVIDIA generated $29.76 billion in profits in 2024, compared to $4.37 billion in net profits in 2023, over $9.7 billion in profits in 2022 and $4.3 billion in 2021.
NVIDIA had 29,600 employees as of January 2024, 26,196 employees as of January 2023, 22,473 employees in the same period of 2022, and 18,975 in the same period of 2021.
The transformer architecture – sometimes referred to as the transformer neural network or transformer model – is an architecture that endeavors to solve sequence-to-sequence tasks while easily handling long-range dependencies.
OpenAI has built the foundational layer of the AI industry. With large generative models like GPT-3 and DALL-E, OpenAI offers API access to businesses that want to develop applications on top of its foundational models while being able to plug these models into their products and customize these models with proprietary data and additional AI features. On the other hand, OpenAI also released ChatGPT, developing around a freemiummodel. Microsoft also commercializes opener products through its commercial partnership.
OpenAI and Microsoft partnered up from a commercial standpoint. The history of the partnership started in 2016 and consolidated in 2019, with Microsoft investing a billion dollars into the partnership. It’s now taking a leap forward, with Microsoft in talks to put $10 billion into this partnership. Microsoft, through OpenAI, is developing its Azure AI Supercomputer while enhancing its Azure Enterprise Platform and integrating OpenAI’s models into its business and consumer products (GitHub, Office, Bing).
Stability AI is the entity behind Stable Diffusion. Stability makes money from our AI products and from providing AI consulting services to businesses. Stability AI monetizes Stable Diffusion via DreamStudio’s APIs. While it also releases it open-source for anyone to download and use. Stability AI also makes money via enterprise services, where its core development team offers the chance to enterprise customers to service, scale, and customize Stable Diffusion or other large generative models to their needs.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
