NVIDIA’s first mover advantage in AI
NVIDIA (NVDA) has been at the forefront of the AI (artificial intelligence) revolution, having started working on this technology back in 2005. At that time, it built CUDA software that enables its GPUs (graphics processing units) to run computations required by AI.
Its efforts have finally paid off, giving NVIDIA a first mover advantage in a multibillion-dollar AI opportunity that spans across data center, cars, robots, smart cities, autonomous industries, and many more areas yet to be explored. NVIDIA is supporting AI researchers and startups that are exploring different applications wherein AI can improve efficiency.
Scientists and supercomputers are using AI to perform heavy computations in areas ranging from particle physics to drug discovery to astrophysics.
AI in several industry verticals
NVIDIA’s video platform Jetson is bringing AI at the edge. The company is increasingly partnering with Japanese companies to support industrial automation. It partnered with a large industrial robot and factory automation company FANUC and constructions equipment company Komatsu to make AI-enabled autonomous machinery. NVIDIA is also building industrial drones to inspect pipelines and power lines or inspect farms to spray insecticides.
NVIDIA has partnered with General Electric (GE) to bring AI across various verticals. GE Health is using AI in medical imaging. GE subsidiary Baker Hughes (BHGE) has partnered with NVIDIA to use AI in all areas of oil and gas industry right from discovering new oil sources to delivering it to the end customer.
NVIDIA would use its full range of GPUs from Jetson platform to DGX-1 supercomputer to solve massive computational problems related to finding new drill spots and identifying ways to deal with seismic activity at drilling sites. Baker Hughes looks to maximize returns on natural resources, enhance the life of the equipment, and avoid major malfunctions with the help of AI.
NVIDIA in AI city
NVIDIA is also looking to materialize AI city. It is working with China’s (FXI) Alibaba (BABA) and Huawei to roll out its Metropolis Smart Cities platform. NVIDIA’s Jetson would bring AI inside millions of security monitoring cameras being deployed across major cities of China. The Metropolis Smart Cities platform would collect data from these cameras to help with the law enforcement.
NVIDIA is also working on developing drones for security use as well as commercial use such as delivery to remote areas. Edge computing has the potential to become a separate business segment of NVIDIA in the coming few years.
Next, we’ll assess NVIDIA’s Professional Visualization segment.