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Nvidia CEO to Reassure the AI Industry of the Firm’s Dominance This Week

Jensen Huang, Nvidia’s CEO, will defend the company’s dominance in the AI chip market amid growing concerns about costs during the upcoming firm’s annual developer conference. As the industry leader in high-performance chips, Nvidia has benefited from the surge in AI demand, but competition and shifting market trends are putting pressure on its position.

The conference follows a shake-up in the market caused by DeepSeek, which launched a chatbot that reportedly required less processing power than its competitors. DeepSeek’s announcement rattled U.S. investors and contributed to a dip in Nvidia’s stock. The company’s business model relies on selling powerful chips, often priced at thousands of dollars each, a strategy that has driven its revenue to $130.5 billion over the last three years.

During the event, the company will reveal details about its upcoming chip system, Vera Rubin. Production is slated to begin this year. However, the announcement comes as the previous chip, the David Blackwell chip—introduced at last year’s conference—has faced production setbacks, affecting the company’s profit margins.

The company’s dominance in AI training—where large datasets are fed into models to make them smarter—is nearly absolute, with over 90% market share. However, the landscape is evolving. AI processing is shifting toward inference, where trained models generate real-time responses.

This shift is opening the door for competitors, including startups and established players like AMD, which aim to provide cheaper and more energy-efficient alternatives to Nvidia’s power-hungry chips.

Inference computing varies widely, from simple AI-driven smartphone functions to massive data center operations handling complex tasks. Power consumption has become a crucial factor, with some AI firms even considering nuclear energy to meet the demands of Nvidia’s hardware.

Despite this, Nvidia argues that a new artificial intelligence approach called—reasoning—strengthens its position. This method, which involves chatbots analyzing their responses in real-time, requires even greater computing power—an area where Nvidia excels.

Besides AI chips, Nvidia is anticipated to present broader plans in computing, including advancements in robotics powered by AI as well as quantum computing. Huang has previously suggested that practical quantum applications were still years away, a comment that sent shockwaves through the industry.

In response, Google and Microsoft pushed back, claiming the technology is closer to viability. Nvidia has since decided to dedicate a day at the conference to talking about quantum developments and its role in the industry.

Huang’s keynote speech on Tuesday will also touch on Nvidia’s push into CPUs for personal computers, signaling the company’s ambition beyond AI chips. With other industry players like D-Wave Quantum Inc. (NYSE: QBTS) making strides in advancing quantum computing systems tailored to the specific needs of their customers, Nvidia could be given a run for its money in this segment.

NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS

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