AI Processor Wars Burning Hot And Bright


(MENAFN- Asia Times) Apple is the latest in a growing list of challengers to Nvidia, the world's leading designer of artificial intelligence (AI) processors but China is the only nation that competes with the US in the technology. With market forces short-circuited by US-led technology bans and sanctions, China does so by necessity.

Apple's share price jumped more than 7% to a new all-time high on June 11, following CEO Tim Cook's presentation of the company's AI strategy at its Worldwide Developers conference the day before.

Nvidia's share price was down 0.7% on June 11, reminding investors and others that while the company's sales and profits will probably continue to grow, its extraordinarily high market share and stock market valuation are both likely to slip in the future.

Nvidia faces a growing list of global competitors who seek a share of the market and customers who would rather not deal with a monopoly supplier. The situation is different but less favorable in China, where US government sanctions have undercut Nvidia's ability to compete with Huawei and other local AI chip designers.

Apple is starting by integrating OpenAI's ChatGPT with an upgraded version of its Siri virtual assistant. After that, it will enable users to create their own emoji digital icons, called Genmoji, to suit their“vibe” as San Jose's Mercury News puts it.

“Users will also be able to create personalized photos,” the article continues,“such as taking a picture of your mom and making it into a stylized, cartoon-y version, adding a superhero cape.”
Other“Apple Intelligence” services will follow.“It is the next big step for Apple,” said Cook.

This should make the new iPhones, iPads and Macs more competitive but it is a far cry from Nvidia's current top-of-the-line Hopper, recently announced Blackwell and next-generation Rubin AI processors, which are or will be used to create large language models and digital twins of complicated industrial machinery and workflows.

Nvidia currently has 80% or more of the AI processor market, in the estimation of analysts. AMD (another American integrated circuit design company), Intel and many other competitors including Google, Amazon Web Services, IBM and AI ventures SambaNova, Cerebrus and Groq, are also positioning for a share of the market.

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Asia Times

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