Nvidia To Make CPUs, Going After Intel

Nvidia said it's offering the company's first server microprocessors, extending a push into Intel's most lucrative market with a chip aimed at handling the most complicated computing work. Intel shares fell more than 2% on the news. From a report: The graphics chipmaker has designed a central processing unit, or CPU, based on technology from Arm, a company it's trying to acquire from Japan's SoftBank Group. The Swiss National Supercomputing Centre and U.S. Department of Energy's Los Alamos National Laboratory will be the first to use the chips in their computers, Nvidia said Monday at an online event. Nvidia has focused mainly on graphics processing units, or GPUs, which are used to power video games and data-heavy computing tasks in data centers. CPUs, by contrast, are a type of chip that's more of a generalist and can do basic tasks like running operating systems. Expanding into this product category opens up more revenue opportunities for Nvidia.

Founder and Chief Executive Officer Jensen Huang has made Nvidia the most valuable U.S. chipmaker by delivering on his promise to give graphics chips a major role in the explosion in cloud computing. Data center revenue contributes about 40% of the company's sales, up from less than 7% just five years ago. Intel still has more than 90% of the market in server processors, which can sell for more than $10,000 each. The CPU, named Grace after the late pioneering computer scientist Grace Hopper, is designed to work closely with Nvidia graphics chips to better handle new computing problems that will come with a trillion parameters. Systems working with the new chip will be 10 times faster than those currently using a combination of Nvidia graphics chips and Intel CPUs. The new product will be available at the beginning of 2023, Nvidia said.

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