On Tuesday, at the "AI Summit DC" artificial intelligence summit in Washington D.C., the U.S. capital, NVIDIA (NVDA.US), facing concerns about the electricity demand of AI computing, promoted the energy efficiency of its latest chips, which excited investors and led to a more than 4% increase in its stock price, reaching a three-month high.
NVIDIA stated at the summit that the Blackwell chip, which began to be introduced to customers this year for developing OpenAI's GPT-4 software, requires only 3 GW of electricity, compared to up to 5,500 GW required for the process a decade ago.
NVIDIA Vice President Bob Pette said in a press conference before the summit: "Our Blackwell platform is essentially built with energy efficiency in mind."
The company also highlighted its progress in software, including the creation of "agent blueprints" that allow businesses to quickly deploy customized AI services. Agents are software that handle real-world tasks, such as processing customer requests, assisting in designing equipment, or accelerating drug research and development.
This summit continued to drive NVIDIA's stock price up on Tuesday, with the company's stock rising nearly 4.5% to its highest level since July 11th in the past three months. Following a 239% increase in 2023, the stock has more than doubled this year.
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Although NVIDIA has been the biggest beneficiary of the AI spending boom, most of its revenue comes from a small number of data center manufacturers and operators. The company said it is "leading" the expansion of the use of this technology into more areas, laying the foundation for what it considers a new industrial revolution.
This push also includes finding more customized uses for artificial intelligence. Pette said that while tools like OpenAI's ChatGPT are generally helpful, they tend to "reproduce the content we post on the internet."
He stated that such services will not find a cure for cancer, nor will they help run a specific business. Instead, people need a smaller, purpose-built artificial intelligence model tailored to a specific purpose.
This software is part of NVIDIA's expanding range of products and services, which include chips, servers, networking equipment, AI models, and services. The overall goal is to help companies more easily integrate everything needed to use artificial intelligence.
In addition to agent software, Deloitte also uses some of NVIDIA's software in its CyberSphere online security service. The chip manufacturer said that AT&T (T.US), Lowe's (LOW.US), and ServiceNow (NOW.US) are also adopting NVIDIA's products.Nvidia also stated that artificial intelligence is particularly likely to transform the healthcare industry. Pette mentioned that the company has been preparing for this shift over the past decade by developing its drug discovery business.
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