TLDR
- Jensen Huang, Nvidia’s CEO, announced the company’s intention to challenge Intel and AMD in the CPU marketplace
- The AI industry is transitioning from GPU-intensive model training to CPU-optimized agent deployment
- Nvidia introduced its Grace and Vera CPU processors in 2023, engineered for data center applications with superior data processing capabilities
- Meta Platforms has agreed to purchase Nvidia CPUs independently, marking a departure from traditional GPU-CPU bundles
- AMD secured its own standalone CPU agreement with Meta, signaling intensifying market competition
For years, Nvidia’s fortunes have been built on graphics processing units. Now, CEO Jensen Huang is orchestrating an ambitious expansion into central processing units, a domain long controlled by Intel and AMD.
During Nvidia’s fiscal fourth-quarter earnings discussion on Wednesday, Huang informed analysts that his company wasn’t merely preparing for the CPU’s resurgence — Nvidia intended to dominate it.
“We love CPUs as well as GPUs,” Huang said on the call.
For many years, central processing units managed the majority of computational operations. Graphics processors subsequently captured a substantial portion of this workload when AI model training surged, demanding the parallel processing capabilities at which GPUs excel.
However, this equilibrium is undergoing another transformation. AI enterprises are now transitioning from model training to model deployment — and rolling out what are known as “agents” that perform tasks like code writing, document analysis, and report generation.
These operations perform more efficiently on central processors, according to Ben Bajarin, an analyst at Creative Strategies. He noted that agentic computing “is happening more and more, and sometimes primarily, on the CPU.”
The CPU vs GPU Shift in AI
Nvidia’s present top-tier AI server system, the NVL72, contains 36 central processors alongside 72 graphics processors. Bajarin indicated this ratio might evolve toward equal numbers — or graphics processors could be eliminated altogether for certain applications.
Nvidia unveiled its Grace and Vera central processing chips for data center environments in 2023. Huang explained these processors feature distinct architecture compared to Intel and AMD offerings, prioritizing data throughput over general-purpose versatility.
“It is designed to be focused on very high data processing capabilities,” Huang said.
Nvidia recently revealed an agreement with Meta Platforms for substantial CPU shipments on an independent basis — signifying delivery without accompanying GPUs. This represents a departure from Nvidia’s conventional sales approach.
Meta isn’t abandoning its current CPU vendors. The social media giant is merely diversifying its supplier base by adding Nvidia. Shortly after Nvidia’s announcement, AMD also disclosed a fresh CPU contract with Meta.
Intel’s Dominance No Longer Guaranteed
Dave Altavilla, an analyst with HotTech Vision and Analysis, suggested Nvidia is attempting to demonstrate that the central processor “is no longer the assumed default foundation of modern compute infrastructure.”
During his January CES presentation, Huang predicted that Nvidia CPU adoption in data centers would “explode,” adding that he wouldn’t be shocked if Nvidia emerged as “one of the largest CPU makers in the world.”
Nvidia intends to reveal additional information about its central processor development plans at its annual developer conference scheduled for Silicon Valley next month.
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