Jensen Huang, CEO of Nvidia, wears his usual leather jacket.
Intel shares closed at 4.18% on Monday after it became known that Nvidia is planning to manufacture its own server CPU based on ARM technology. Nvidia shares ended the day up 5.62%.
Nvidia is best known for graphics processors and artificial intelligence chips, not the CPUs that power the heart of computers.
The new “Grace” server processor is the first data center CPU to challenge Intel in a market that is estimated to dominate with a market share of more than 90%. Intel generated $ 26.1 billion in revenue for its data center group in 2020, up 11% year over year.
Nvidia said its Grace chips would use the ARM instruction set, which is different from the x86 instructions at the heart of Intel processors.
“Coupled with the GPU and DPU, Grace offers us the third fundamental technology for computing and the ability to redesign the data center to drive AI. NVIDIA is now a three-chip company,” said Jensen Huang, CEO from Nvidia, in a statement.
Nvidia said researchers, including the US Department of Energy’s Los Alamos National Laboratory, are planning to build supercomputers using the Grace chips.
Nvidia announced last year that it plans to buy ARM for $ 40 billion and the company will continue to license its technology to chipmakers that rely on it, including Apple and Qualcomm. ARM-based chips dominate in smartphones, but are not widely used in data centers.