Nvidia debuts new AI supercomputers and services after shares skyrocket

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Nvidia (NVDA) took the wraps off a slew of new AI-centric products on Monday, as the chipmaker continues to ride the generative-AI wave.

The lineup includes a high-powered supercomputer called the Nvidia DGX GH200 and a platform called Nvidia ACE that will put generative AI to work in video game development. Nvidia also said that advertising giant WPP will use its platforms and generative AI to build a content engine for producing ads.

The announcements come after shares of the graphics chip giant skyrocketed last week on news that the company anticipated second-quarter revenue well above Wall Street’s expectations, based on the strength of its data center business.

Nvidia stock was up more than 165% year-to-date as of Friday afternoon, with the S&P 500 (^GSPC) just 9.5% higher in the same time frame. Rival chipmaker AMD (AMD) has seen a similar boost in stock price, rising 93%. But Intel (INTC) is lagging behind, with shares up just 8%.

Nvidia CEO Jensen Huang said on a recent earnings call that he believes data center operators are looking to inject AI computing prowess into their gear. That in turn is powering a shift to graphics chips like those his company makes, and away from the central processing units that underpinned Intel's previous dominance in data centers.

According to Nvidia, its new DGX GH200 supercomputers combine 256 GH200 superchips that can act as a single graphics processing unit (GPU). The result is a system that has nearly 500 times the memory of a single one of Nvidia’s DGX A100 systems.

“Generative AI, large language models and recommender systems are the digital engines of the modern economy,” Huang said in a statement.

Nvidia's Grace Hopper platform pairs the company's CPU and GPU technology into one system. (Image: Nvidia)
Nvidia's Grace Hopper platform pairs the company's CPU and GPU technology into one system. (Image: Nvidia) · Nvidia

“DGX GH200 AI supercomputers integrate NVIDIA’s most advanced accelerated computing and networking technologies to expand the frontier of AI.”

The GH200 superchips that power the new supercomputer work by combining Nvidia’s Arm-based Grace GPU and an Nvidia H100 Tensor Core GPU in a single package.

So far Google (GOOG, GOOGL) Cloud, Facebook parent Meta (META), and Microsoft (MSFT) are among the first companies that will get access to the supercomputers, Nvidia said. The chipmaker also said it's building its own supercomputer running four DGX 200 systems at the same time to power its own research.

Nvidia is adding products against the backdrop of a massive increase in interest in generative AI that OpenAI kickstarted with the release of its ChatGPT bot last year. Since then, a wave of tech companies have released or said they're working on a generative-AI platform of their own.