NVIDIA Enters Cloud Computing, Hits Record Market Cap
NVIDIA enters cloud computing with DGX Cloud, challenging Amazon, Microsoft & Google. Stock hits $3.75T market cap, becoming world's most valuable company.
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Cloud computing has brought enormous profits to Amazon, Microsoft, and Google. Today, with the rise of AI cloud computing specialists and the emergence of a new industry powerhouse—NVIDIA—this cash cow is facing new threats.
AI chip manufacturer NVIDIA launched its own cloud computing service two years ago, called DGX Cloud. The company has also nurtured a group of emerging companies that compete with large cloud computing companies, investing in AI cloud computing companies CoreWeave and Lambda.
These initiatives have not yet had a huge impact, but if computing demand continues to shift toward AI, and NVIDIA remains the primary "arms dealer" in this field, then a shift in the competitive landscape is conceivable.
DGX Cloud has already grown rapidly. UBS analysts estimated at its inception that its annual revenue could exceed $10 billion. CoreWeave went public on NASDAQ in March and is expected to generate approximately $5 billion in revenue this year.
These businesses are limited by their narrow focus on AI computing and pale in comparison to Amazon's market-leading cloud business, which had sales of over $107 billion last year.
