(Original Headline: Artificial Intelligence Fuels Arms Race Among Chip Makers)
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Netease Technology News November 13 news, according to the Wall Street Journal reported that as smart phones and PC market cooling, chip makers are competing to develop artificial intelligence products to drive growth.
Nvidia, Intel, AMD and a large number of startups are building new processor products to tap a larger market for AI hardware and software. According to IDC, a market research firm, this market has an annual growth rate of 50%.
In some areas of the semiconductor industry, growth has become somewhat uncertain, which has triggered a wave of industry consolidation. Last week, Broadcom, a networked professional technology company, proposed to acquire smart phone chip leader Qualcomm with a price of US$ 105 billion. If the deal is finally reached, it will be the largest deal in the industry to date.
IDC estimates that by 2021, global spending on AI-related hardware and software may increase from $12 billion this year to $57.6 billion. The research organization expects that a significant portion of these expenditures will flow into the data center, and by 2020 the data center estimates that a quarter of the capacity will be used for AI-related calculations.
In recent years, specific AI technology has become an integral part of product services of various large technology companies. For example, with this type of technology, Amazon’s Echo Smart Speakers can understand voice commands; the Nest surveillance camera from Google’s Alphabet can distinguish between acquaintances and strangers, which in turn can promptly warn users; Facebook can also use social media. Posts are matched with ads that are most likely to interest posters.
At a technology conference earlier this month in Washington, Nvidia demonstrated a law enforcement system that recognizes cars and humans
The biggest technology companies - Google, Facebook, Amazon, IBM, Microsoft, and China's Internet giants - all have dedicated hardware to their data centers to accelerate AI software training, such as training such software. Document translation capabilities.
Internet giants are using AI technology called deep learning to enable software to distribute digital files such as images, recordings, and documents. It takes time for such procedures to discover meaningful patterns in training data. Internet giants want to improve their algorithms so that they do not have to wait for weeks to know if the training works.
Chip vendors are trying to help them speed up this work.
Since its establishment 24 years ago, NVIDIA has spent most of its time developing high-end graphics chips for personal computers. In recent years, its products have proven to be faster than traditional processors in training AI software.
Nvidia reported third-quarter earnings today, with revenue and earnings surpassing Wall Street expectations during the period. In the past 12 months, its data center business sales have nearly doubled to about $1.6 billion. Driven by the rapid growth of the business, the company's stock price has also soared nearly 7 times, as of US time Thursday closed at 205.32 US dollars.
Mike Henry, CEO of AI chip startup Mythic, points out that in recent years, optimism surrounding Nvidia has been felt by everyone in the industry. He said that “explosive interest in growth†has helped Mythic gain $15 million in venture capital, investors include the well-known Silicon Valley Venture Company DFJ.
According to the data from the venture capital database PitchBook Data, the total amount of private investors’ ownership of AI hardware companies has almost doubled this year to $252 million.
Nvidia’s main competitors have not stood still. Last year, Intel retired Nervana Systems and the transaction amount was not announced. The chip giant is teaming up with Facebook and other companies to build a Nervana-based chip before the end of the year in an effort to outperform Nvidia in AI computing capabilities.
In addition to Nervana, Intel has prioritized AI performance throughout its data center products. Intel's third-quarter earnings report released last month showed that server processor and programmable chip business revenues rose 7% and 10% year-on-year respectively.
"We will not disclose our total investment in these businesses, but this is a big project that is as important as our work leading traditional processing technologies," said Naveen Rao, who heads Intel's AI division.
AMD, which competes with Nvidia’s video game system graphics market, recently introduced an AI graphics processor called Radeon Instinct. Baidu is a customer of the company. AMD also revealed that other cloud service providers are its customers in the recent financial report conference call.
Some companies do not wait for large chip makers to make excellent products. For example, Google chose to design its own AI accelerator, seeking to gain a competitive advantage by tailoring chips to its software.
“This area is just getting started,†said Ian Buck, head of Accelerated Computing, Nvidia. “It feels like it is being created and re-invented every quarter.†(Le Bang)
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