The company currently dominate the AI chip market with an 80% market share. The heavy investment shoes their commitment to maintain market share.
“AI is transforming our daily lives — opening up a world of new opportunities,” said Jensen Huang, founder and CEO of NVIDIA. “Through our collaboration with Microsoft, we’re building a future that unlocks the promise of AI for customers, helping them deliver innovative solutions to the world.”
In the past year Nvidia’s research and development expenses increased by over !8%. However, this was less than the previous two years which were 39% in 2022 and a 34% increase from 2021.
Stocklytics Financial analyst Edith Reads commented on the data, "The trajectory of Nvidia’s R&D investment illuminates a strategic manoeuvre aimed at fortifying its position at the forefront of technological advancement."
In a bid to challenge Nvidia’s market dominance AMD also released a new high-performance chip late last year, and though it’s slower than Nvidia’s top product, it may win over some cost-conscious customers. Additionally, AWS aims to target customers on a budget by offering chips for training language models and inference.
