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Revolutionizing the Technology Sector: The Rise of AI Chips

  • AI chips resemble the shape of the chips that power video games.
  • They were specifically designed to make artificial intelligence systems.
  • Experts believe these chips are revolutionizing AI and could reshape the entire technology sector.

AI chips do not yet have a definition accepted by analysts, but researcher Hannah Dohmen says “The term encompasses specialized computing hardware to handle AI workloads by solving problems that can overwhelm conventional computers,” she writes abcNEWS.

Nvidia is the leading company selling AI chips The company’s shares have risen 25% in the past week with a cumulative value of more than a trillion dollars. One of the latest products is the H100 GPU. The chip contains 80 billion transmitters, about 13 million more than Apple’s latest high-end processor.

Nvidia does not manufacture these chips, a task that requires enormous investment in factories. Instead, the company relies on Asian manufacturers such as Taiwan Semiconductor Manufacturing or Samsung Electronics in Korea.

The biggest customers of artificial intelligence chips are Amazon and Microsoft. Still, analysts say Nvidia will inevitably face tougher competition. A potential rival is Advanced Micro Devices, which has already taken steps to strengthen its own AI chip lineup

A few years ago, for example, Nvidia was in crisis as cryptocurrency miners cornered the market. This problem disappeared with the cryptocurrency market crash in early 2022.

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2023-06-01 11:08:23
#chips #company #trillion #dollars #profit #week #investors #potential

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