Thematic Spotlight: Nvidia’s New GPU Chips Away Competition

Nvidia will launch a new generation of GPU chipsets to succeed its current, wildly successful Hopper AI products. The new platform named ‘Blackwell’ in honour of influential African American mathematician David Harold Blackwell will feature the B200 GPU as the company’s new flagship AI product.1

Nvidia’s new release further cements its already significant moat over the rest of the AI accelerator industry. While the H100, Nvidia’s current market-leading AI chipset, had received some competition from fellow chipmaker AMD over the past year, the new B200 will look to dominate the market.2 According to Nvidia, B200 will pack more than double the transistors and deliver five times more computational power than the H100.3 Furthermore, the chipmaker claims the new Blackwell GPUs will enable AI models that scale up to an unprecedented 10 trillion parameters – for comparison OpenAI’s GPT-3 is trained on roughly 175 billion parameters, and the newly released GPT-4 ‘only’ utilises 1 trillion parameters.

Apart from B200, CEO Jensen Huang also introduced the Blackwell GB200, referred to as “superchip,” which integrates two B200 GPUs with a Grace CPU.4 This integration aims to reduce energy and cost requirements for AI computations, with Nvidia suggesting that it can achieve a 25-fold reduction in inference costs compared to the H100 chip.5 According to released statistics, for any given GPT-3 level AI model, the GB200 will demonstrate seven times the performance of a H100.6

Overall, the new Blackwell GPUs look to be bringing much higher efficiency to the training of AI models, building on the foundation established by the H100 and reinforcing Nvidia’s leading position in the AI market. With the AI chipset market size set to reach US$300 billion by 2030, should Nvidia’s claims hold true, the firm looks to be well placed to capitalise on the expansion.7

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Forecasts are not guaranteed and undue reliance should not be placed on them. This information is based on views held by Global X as at 26/03/2024. Investing involves risk, including the possible loss of principal. Diversification does not ensure a profit nor guarantee against a loss.