NVIDIA and AI leadership

NVIDIA and AI leadership

The chip designer NVIDIA is often mentioned at the same time as the enormous demand for artificial intelligence. When it comes to AI solutions, NVIDIA may already have a monopoly position, as Daniel Newman of The Futurum Group has investigated. With the release of the AI ​​chatbot ChatGPT by the startup OpenAI in November 2022, a real hype arose about artificial intelligence. NVIDIA is benefiting greatly from the high demand for ChatGPT and other AI solutions as the company provides powerful components for sophisticated AI models. NVIDIA also offers AI functions itself with the CUDA programming interface. CEO Jensen Huang emphasizes that the company's primary aim is not to capture market share, but to create new markets, which should lead to greater productivity and job creation.

AMD, Intel, Microsoft and Alphabet are trying to take market share from NVIDIA, but so far NVIDIA remains the leader due to its extensive range of solutions. NVIDIA's high market presence in data center GPUs and the end-to-end and complete solutions it provides indicate monopolistic behavior. Locking customers into NVIDIA's product range may make it difficult for competitors to attract customers to alternative solutions. Currently, competition in the market for AI solutions is still limited, but analysts expect more competition and the availability of more powerful alternatives in the future.

Newman stresses that it's important to monitor when competitors launch their alternative products to determine whether NVIDIA will allow migration to other hardware vendors. He predicts that NVIDIA will open its systems to other hardware manufacturers in the future, which could protect the company from antitrust measures. Despite NVIDIA's strong growth and market power, the company may remain in the sights of antitrust authorities. Any antitrust measures could relate to NVIDIA's software, which is currently optimized for its own hardware.