4min snip

INSIGHT

Nvidia's Dominance in the AI Chip Market

Nvidia's GPUs, initially designed for gaming, became essential for training AI models.
As AI models grew larger, the demand for these GPUs surged, leading to Nvidia's market dominance (approximately 90%).
This dominance allows Nvidia to charge substantial markups, with chips costing $1,000 in silicon selling for $30,000.
Despite high prices, demand outstrips supply, making Nvidia's chips difficult to acquire.
The scarcity and cost have prompted major tech companies like Google, Amazon, and Microsoft to develop their own AI chips.

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