LogInThe company has started offering its AI services through cloud platforms such as ones owned by Google and Microsoft.
NVIDIA has announced its intention to sell AI services directly to large companies and governments, indicating a shift towards a "new business model".
During a conference call Wednesday, the company's founder and CEO Jensen Huang revealed that NVIDIA's AI software will now be accessible through multiple cloud-computing services, including the ones owned by Microsoft and Google, adding that there are plans to expand to additional providers in the future.
The company stated that its services, which include providing access to supercomputers for AI model training and supplying pre-trained large AI models of its own, will soon yield "hundreds of millions of dollars" in revenue. This will be part of NVIDIA's software business that will supplement the company's current chip sales.
Speaking to MarketWatch, Chief Financial Officer Colette Kress shared that the company believes that as it continues to grow and scale its business, the software segment will become an increasingly important driver of its revenue.
"As we scale, software standalone going forward, it will be a driver," Kress said. "Right now, just the amount of products and offerings that we have in data center are going to be the largest driver in the mix of those products."
NVIDIA's share price has surged this year due to investor optimism regarding its role as the primary supplier of GPUs utilized in training large AI models. The company's shares rose by another 8% in after-hours trading after the chipmaker announced it was recovering from a decline in its gaming business caused by the pandemic and is now focusing on its artificial intelligence efforts.
The company anticipates that its revenue for the current quarter will reach $6.5 billion which surpasses Wall Street's expectation of $6.2bn. Additionally, the company revealed that sales of gaming graphics cards reached $1.83 billion in the latest quarter. Despite this figure representing a 46% year-on-year decline, it still exceeded the majority of forecasts.
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