NVIDIA reports 84% surge in revenue for Q1FY22, data centre business earns $2.05 billion

Global semiconductor and tech services company NVIDIA has announced its fiscal results for the first quarter of 2022. The company reported a revenue of $5.66 billion, an 84 percent year-on-year surge and beating analysts’ estimates by a dramatic margin.

The company attributes its growth to its three core businesses, Gaming, Data Centres, Professional Visualisation.

Gaming saw a record 106 percent year-on-year growth with $2.76 billion in revenue due to increased sales in GeForce GPUs as well as game-console SOCs.

Data centre revenue was up 79 percent year-on-year with $2.05 billion earned. This was driven primarily by NVIDIA’s acquisition of Israeli-American tech hardware manufacturer Mellanox. NVIDIA announced the acquisition of Mellanox in 2019 for $6.9 billion, and the transaction was completed in April 2020.

NVIDIA has also credited part of its revenue boom to cryptocurrency trading and mining, with its Cryptocurrency Mining Processors (CMP) generating revenue of $155 million.

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NVIDIA reports 84% surge in revenue for Q1FY22, data centre business earns $2.05 billion

Global semiconductor and tech services company NVIDIA has announced its fiscal results for the first quarter of 2022. The company reported a revenue of $5.66 billion, an 84 per cent year-on-year surge and beating analysts’ estimates by a dramatic margin.

The company attributes its growth to its three core businesses, Gaming, Data Centres, Professional Visualisation.

Gaming saw a record 106 percent year-on-year growth with $2.76 billion in revenue due to increased sales in GeForce GPUs as well as game-console SOCs.

Data centre revenue was up 79 per cent year-on-year with $2.05 billion earned. This was driven primarily by NVIDIA’s acquisition of Israeli-American tech hardware manufacturer Mellanox. NVIDIA announced the acquisition of Mellanox in 2019 for $6.9 billion, and the transaction was completed in April 2020.

NVIDIA has also credited part of its revenue boom to cryptocurrency trading and mining, with its Cryptocurrency Mining Processors (CMP) generating revenue of $155 million.

NVIDIA debuts first data centre GPU powered by AI

GPU major NVIDIA has unveiled its latest AI-powered data centre CPU to take on demanding workloads.

Named “Grace”, the CPU is NVIDIA’s first data centre CPU that incorporates the design technology of ARM, a semiconductor manufacturer heavyweight that the company acquired last year for a record-breaking $40 billion.

Designed for complex, high-performance computing (HPC), NVIDIA said that Grace will deliver a performance ten times faster than today’s servers.

“Coupled with the GPU and DPU, Grace gives us the third foundational technology for computing, and the ability to re-architect the data centre to advance AI,” added founder and CEO Jensen Huang.

Mr. Huang also announced that with Grace, NVIDIA is now “a three-chip company.”

“As the world’s most widely licensed processor architecture, ARM drives innovation in incredible new ways every day,” said ARM CEO Simon Segars.

“NVIDIA’s introduction of the Grace data centre CPU illustrates clearly how ARM’s licensing model enables an important invention, one that will further support the incredible work of AI researchers and scientists everywhere.” he continued.

Grace is expected to be available in 2023.

NVIDIA brings GeForce cloud gaming to Australia

Global chipmaking giant NVIDIA has brought its flagship cloud gaming service, GeForce NOW, to Australia.

It has partnered with Perth-based internet service provider (ISP), Pentanet, which will be joining NVIDIA’s GeForce NOW Alliance where partners work together to deliver low latency, high speed gaming experiences. Some well-known members of the Alliance include Japan’s SoftBank, South Korea’s LG UPlus, and Taiwan Mobile.

As part of the alliance, Pentanet will be hosting NVIDIA’s RTX servers that function to power game streaming, the first ISP in Australia to do so. The service will also bring real-time ray tracing to video games, a graphics rendering technique where characters in video games look more realistic and lifelike.

Aside from Australia, the service will also be arriving in Turkey and Saudi Arabia, where telcos Turkcell and Zain KSA are set to join the GeForce NOW Alliance.

NVIDIA buys chip designer Arm from SoftBank for record $40 billion

NVIDIA has agreed to buy chip designer Arm from SoftBank in a record US$40 billion deal. The purchase could reshape the highly competitive semiconductor and data center landscape.

By combining the American multinational technology company and the British chip designer together, NVIDIA will target the age of artificial intelligence by accelerating innovation and expanding into high-growth markets.

“Arm and NVIDIA share a vision and passion that ubiquitous, energy-efficient computing will help address the world’s most pressing issues from climate change to healthcare, from agriculture to education,” said Simon Segars, the CEO of Arm.

NVIDIA will utilise Arm’s CPU ecosystem to advance computing in cloud, smartphones, PCs, self-driving cars, robotics and edge computing. Arm’s designs have also started to play a larger role in the data center chip market through Amazon’s cloud industry and a number of startups, posing as competition to Intel Corp and Advanced Micro Devices.

NVIDIA will reportedly pay SoftBank US$21.5 billion in shares and US$12 billion in cash as well as a possible US$5 billion in cash or shares depending on Arm’s business performance. 

SoftBank, a Japanese multinational conglomerate holding company, will remain committed to Arm’s long-term success through its stake in NVIDIA, which is expected to be between 6.7% and 8.1%.

“This is a compelling combination that projects Arm, Cambridge and the U.K. to the forefront of some of the most exciting technological innovations of our time,” said Masayoshi Son, the Chairman and CEO of SoftBank.

After acquiring Arm for US$32 billion four years ago, the sale marks an early exit for SoftBank. A source told Reuters that SoftBank have held early stage talks about taking the Japanese technology group private, which could gain momentum after the sale of Arm.

While Arm has long been a neutral technology vendor of its chip architecture to Apple, Samsung, Amazon and other portable device providers, the sale will put these licenses under the control of a single player in the semiconductor market.

With the deal’s potential to cause unfair advantages over other licensees and conflicts of interest, NVIDIA’s Founder and CEO, Jensen Huang, assured that the neutral licensing model by Arm will be retained, and NVIDIA’s GPU and AI intellectual property will be licensed out for the very first time.

“Arm’s business model is brilliant. We will maintain its open-licensing model and customer neutrality, serving customers in any industry, across the world,” said Mr. Huang.

On top of this, NVIDIA will establish a new global center of excellence in AI research at Arm’s Cambridge campus in the United Kingdom by investing in an Arm-powered AI supercomputer, training facilities for developers and a startup incubator.

“AI is the most powerful technology force of our time … trillions of computers running AI will create a new internet-of-things that is thousands of times larger than today’s internet-of-people,” said Mr. Huang.

Powered by computing chips, AI supercomputers can write software, scale up workloads and reduce the time required to complete a task.

“While AI began in the data center, it is moving quickly to the edge … where smart sensors connected to AI computers can speed checkouts, direct forklifts, orchestrate traffic, and save power,” said NVIDIA in a statement, comparing the new research facility to a a Hadron collider or Hubble telescope for artificial intelligence.

NVIDIA predicted ‘there will be trillions of these small autonomous computers powered by AI, connected by massively powerful cloud data centers in every corner of the world’.

This signifies NVIDIA’s move to push beyond the data center and into the edge, which could continue their success in data center sales, which surpassed NVIDIA’s gaming revenue for the first time in August 2020.

“The computing unit is an entire data center now. We believe that the future computer company is a data center-scale company,” said Mr. Huang.

In April, NVIDIA completed its purchase of Israel-based Mellanox, which makes high-speed networking technology used in data centers and supercomputers.

The deal between NVIDIA, SoftBank and Arm is expected to close in approximately 18 months following regulatory approvals in Britain, the European Union, United States and China.

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NVIDIA buys chip designer Arm from SoftBank for record $40 billion

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VinGroup’s VinAI to be the ‘first in Southeast Asia’ to deploy the NVIDIA DGX A100 data center solution

VinAI Research, VinGroup’s AI research arm revealed, has claimed to be the first in Southeast Asia to deploy the newly-launched NVIDIA DGX A100 data center solution.

Vietnam’s first artificial intelligence research lab looks to use the supercomputer to train large AI models for language and videos by enabling more natural human interaction with machines through voices, gestures and biometrics.

VinAI will scale up AI research with NVIDIA’s DGX A100

Dr Bui Hai Hung, the Director of VinAI Research, said: “We have some exciting models and experiments waiting for the new machine.”

Around 70 scientists, residents and engineers will make full use of the new AI system that can reduce the time required to complete an experiment from more than one week to less than 24 hours.

He added: “Our lab’s computing-facility utilisation is always maxed out at 100% so there is no shortage of workload.”

The research lab contributed to the global fight against the COVID-19 pandemic by automatically analysing tweets for COVID-19 events and enabling face recognition of people donning face masks.

VinAI, founded in 2019, is prepared to scale up their research for applied AI projects, enabled by systems like NVIDIA’s DGX A100.

Dennis Ang, NVIDIA’s Director of Enterprise Business for the SEA and ANZ Region, said: “The new NVIDIA DGX A100 will empower VinAI to optimise computing power and resources to accelerate diverse workloads including data analytics, training and inference.”

The investment in AI is part of VinGroup’s long-term strategy of becoming a technology-focused corporation.

The NVIDIA DGX A100 was revealed in May 2020 as the world’s first five-petaflops server that can be divided into as many as 56 applications running independently. The system includes NVIDIA’s new A100 GPU and will cost around US$199,000.

Jensen Huang, NVIDIA’s Founder and CEO, said in a keynote recorded from the kitchen of his California home that the system allows a single server to either “scale up” to race through computationally intensive tasks such as AI training, or “scale out,” for AI deployment.

NVIDIA estimated that a data center powered by five DGX A100s working on AI training and inference can do the work of a typical data center with 50 DGX-1 systems and 600 CPU systems consuming 630 kilowatts and costing over $11 million.