The dominant global designer and supplier of AI chips aims to capture a portion of an exploding market for custom AI chips and to protect itself from the growing number of companies interested in finding alternatives to its products.
Nvidia officials have met with representatives from Amazon.com , Meta, Microsoft, Google and OpenAI to discuss making custom chips for them, according to two sources familiar with the meetings.
$30 billion marketAccording to estimates from research firm 650 Group's Alan Weckel, the data center custom chip market will grow to as much as $10 billion this year, and double that in 2025.
The broader custom chip market was worth roughly $30 billion in 2023, which amounts to roughly 5% of annual global chip sales, according to Needham analyst Charles Shi.
"With Broadcom's custom silicon business touching $10 billion, and Marvell's around $2 billion, this is a real threat," said Dylan Patel, founder of the silicon research group SemiAnalysis.
Persons:
OpenAI, Greg Reichow, Meta, Dina McKinney, Alan Weckel, Charles Shi, Dylan Patel
Organizations:
Nvidia, Microsoft, Broadcom, Marvell Technology, Eclipse Ventures, Amazon.com, Meta, Google, Reuters, Devices, Marvell, Taiwan Semiconductor Manufacturing
Locations:
Krakow, Poland, Santa Clara , California