NVIDIA's Revenue Grew Because of Its AI Investments, ChatGPT Focus for Its GPU Business

NVIDIA's strategic investment in artificial intelligence has paid off in its recent earnings report which saw a turnaround from the company, exceeding expectations set on them. This would not be possible if not for its massive focus on AI, and now, the company's technology is known for powering ChatGPT in the present.

The famed A100 chips from the company center on AI processes, with ChatGPT-based computers or systems drawing power from NVIDIA's GPU, which proved to be complete with the power needed for this.

NVIDIA's Revenue Grew Thanks to Its AI Investments

According to CNBC's interview with NVIDIA CEO Jensen Huang, NVIDIA had an insight that artificial intelligence is the way to go, and in the past years, the company focused its products and developments on this, as they think this is the future.

However, it was not an immediate success for the company, as it struggled for several years until it overturned its revenue to something acceptable for them. Still, it would not be possible if not for its AI investments.

"We saw early on, about a decade or so ago, that this way of doing software could change everything. And we changed the company from the bottom all the way to the top and sideways. Every chip that we made was focused on artificial intelligence," said Huang.

NVIDIA's earnings report last quarter of 2022 saw a 21 percent drop from its Q4 2021 revenue, and its fiscal-year revenue saw a flat trend.

ChatGPT is Powered by NVIDIA Now

NVIDIA's gamble towards artificial intelligence highly paid off now, especially as it is the processor which powers ChatGPT and other LLMs (large language models) in the technological landscape. There is an upcoming processor revealed by Huang to CNBC, centering on the H100 with a transformer engine, which the CEO referred to as the "T" in ChatGPT.

NVIDIA and its GPUs

The Santa Clara-based tech company, NVIDIA, is mainly centering on its bread and butter which are graphic processing units (GPUs) and these helped the company rise to the top ranks in the industry. It faced different rivals and competitors in the past, and one of the most significant competitors present now is AMD.

NVIDIA initially bordered on gaming to deliver the graphics card needed by a computer, which would then be used in a desktop setup to be paired with CPUs in the market.

Still, the company evolved from its GPU days that are intended for gaming only, especially with significant collaborations with Microsoft in using their GPUs to help build an AI supercomputer to deliver the "first public cloud."

In terms of gaming, NVIDIA is still one of the most iconic names for all graphics card needs, and the company established itself in this product already. Its recent shift and focus towards AI have paid off, and it proved to be yet another lifeline for the company as revenue started to drop, with NVIDIA's latest achievements with ChatGPT.