Countries Developing AI Models in Their Own Language Rely Increasingly on Nvidia Chips
Countries that develop AI models in their own language are increasingly relying on Nvidia chips, which are in high demand as generative AI becomes essential for businesses and governments.
Nvidia's sales forecasts for the third quarter for its AI technology chips, including those that power OpenAI's ChatGPT, did not meet investor expectations. However, the company has seen a growing number of global customers, including governments, seeking to create their own AI models and the necessary hardware to support them.
According to CFO Colette Kress, countries developing their own AI applications will bring in billions of dollars to Nvidia's revenue for the fiscal year ending in January 2025, an increase from previous forecasts of a single-digit billion. Nvidia expects total revenue of around $32.5 billion for the third quarter ending in October.
Kress stated, "Countries around the world want to have their own generative AI that would be able to incorporate their own language, incorporate their own culture, incorporate their own data within that country."
She cited the example of Japan's National Institute of Advanced Industrial Science and Technology, which is developing an AI supercomputer equipped with thousands of Nvidia H200 graphics processors.
Furthermore, governments are also turning to AI to enhance national security.
"AI models are trained on data, and for political entities – particularly nations – their data is secret, and their models need to be customized according to their unique political, economic, cultural, and scientific needs," said Shane Rau, an analyst at IDC Computing Semiconductors.
