Nvidia (NVDA) is best known for its coveted artificial intelligence chips. But at the Nvidia AI Summit in Washington, DC, on Tuesday, Nvidia Vice President of Enterprise Platforms Bob Pette gave a speech that provided more insight into the company’s various software platforms.
Nvidia says companies ranging from AT&T (T), Deloitte and Quantiphi to research centers like the National Cancer Institute and the SETI Institute are using its software technologies to do everything from helping employees work on software development and network engineering to finding signs of alien life.
Nvidia has a number of AI software platforms, including Nvidia NIM Agent Blueprints, Nvidia NIM and Nvidia NeMo. NIM Agent Blueprints is designed to help companies develop generative AI applications, while NIM provides the ability to quickly build chatbots and AI assistants. Nvidia NeMo gives companies the tools to build their own custom generative AI models.
Nvidia shares rose 3.7% after the announcement.
The offering is part of Nvidia’s strategy to ensure that companies look to the company not just for AI processors, but also for its software, generating additional revenue streams beyond hardware sales.
According to Nvidia, AT&T is working with Quantiphi to create a conversational AI platform to help employees with software development and tasks in the financial services industry. The University of Florida is using Nvidia’s NIM and MeMo to enhance its learning management system for teaching assistants, and Deloitte is using Nvidia’s NIM Agent Blueprint in addition to its own cybersecurity products.
Nvidia says the National Cancer Institute is using NIM Agent Blueprint to help reduce the time and cost of developing new drug molecules, while the SETI Institute used the company’s Holoscan software development kit to create software for receiving and analyzing radio waves from the space.
Nvidia is also working with Carnegie Mellon University and the University of Pittsburgh as part of its new AI Tech Community initiative, establishing two new AI centers at the schools. The company says its Nvidia Joint Center with Carnegie Mellon University for Robotics, Autonomy, and AI will provide students, teachers, and researchers with technologies related to robotics and autonomy, while the Nvidia Joint Center with the University of Pittsburgh for AI and Intelligent Systems will do that. revolve around AI focused on health sciences.
Nvidia has developed the world’s most sought-after AI chips, sending its stock price up a whopping 934% over the past two years. To put that into perspective, and perhaps stir up some jealousy, if you invested $10,000 in Nvidia in 2022, your stake would now be worth $103,400.
But the company is facing increasing hardware competition from longtime rivals AMD (AMD) and Intel (INTC). Nvidia’s own customers are also developing their own chips to power their AI software, which could impact the company’s bottom line in the future.
Nvidia’s endgame is to use software to retain its customers well into the future while generating recurring revenue streams.
Showcasing the software also draws developers to Nvidia’s offerings, and the more developers build on Nvidia’s services, the more companies will seek out these platforms.
However, Nvidia’s hardware lead isn’t going away anytime soon. The company has been investing in AI technology for years and should be able to maintain its competitive advantage for some time to come. But by showing off its software, Nvidia wants to prove that it is more than just a chip manufacturer.
Email Daniel Howley at [email protected]. Follow him on Twitter at @DanielHowley.
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