Nvidia Enters the CPU Market

Chipmaker Nvidia, best known for its graphics cards, has designed its first server microprocessor. With this, the company hopes to continue to compete with Intel.

 

Nvidia’s central processing unit (CPU) is based on Arm’s technology, a company that has been trying to acquire Nvidia for a while. There are also already some customers for the CPUs. The company announces that the chips will be used in computers at the Swiss National Supercomputing Center and the Los Alamos National Laboratory of the US Department of Energy.

Until now, Nvidia is mainly known for its graphics cards, a market that has been heavily questioned in recent years, partly because the GPUs were used for a time to mine crypto coins. However, Nvidia’s chips have also found their way to data centres and cloud computing in recent years.

With CPUs, Nvidia would now make more widely deployable chips, initially for data centres. This should diversify the portfolio, although the chips are also designed to work well with its products. According to the company, systems with the Nvidia GPU and CPU would run ten times faster than systems combining Nvidia GPUs with an Intel CPU. The chips should be released in 2023.

The announcement caused optimism in the stock market. Nvidia was a big winner on the stock exchanges in New York on Monday. The chip company’s share ended six percent higher. Intel’s four percent lower.

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