NVIDIA Believes Tesla’s D1 Chip “Validates” Current Automotive Strategy
Chip designer NVIDIA Corporation believes that the introduction by Tesla Inc of the latter’s D1 chip to train its artificial intelligence models for autonomous driving validates NVIDIA’s approach of combining major computing elements for driving solutions. automotive artificial intelligence. NVIDIA’s comments were made by the company’s chief financial officer, Colette Kress, at the tech summit of Bank of Montreal’s investment banking affiliate, BMO Capital Markets, earlier today. During her speech, the leader also shared details about NVIDIA’s supply constraints for its graphics processing units (GPUs), its outlook for the cryptocurrency market and its expectations regarding the imminent takeover of the company. British-designed Arm Ltd.
NVIDIA Says It’s Working With Card Partners To Reduce GPU Shortage
Ms. Kress began by explaining the supply constraints her company faces when it comes to GPUs. The semiconductor industry as a whole has faced severe shortages since the onset of the ongoing pandemic, as demand for consumer electronics has skyrocketed following restrictions forcing buyers to switch to work and to remote entertainment.
According to her, NVIDIA is working with its channel partners, especially with its original equipment manufacturers, to ensure that their needs are met and that GPUs reach gamers.
The executive stressed that:
At the end of Q2, Q3, our overall supply levels on the channel are still quite unclear. So our goal is to keep improving these levels to allow GeForce maps to be available to our players as we go along. Now that means working with each of our distribution partners.
She echoed a similar strategy for data center products by later adding that:
And now we are trying to find these solutions for our customers. We will continue to be areas where we need to focus with our OEMs, with our partners, to ensure that everything that is needed for the data center is available both from the OEM as well as through NVIDIA to serve the all of our customers.
She also commented on the downward movement in GPU retail prices, but warned that more work needs to be done to bring prices down.
According to the executive:
So let me remind everyone how we approach the two important areas of the game and what full-fledged crypto mining is. We focus first on getting our GeForce game cards into the hands of players. During this past quarter, Ampere GPU cards have been one of the fastest ups. We believe we have succeeded with our strategy. I just want to remind everyone that it’s hard for us to estimate the impact of cryptocurrency mining on our sales, we just don’t have visibility into the end use of our GPUs.
However, our strategy is to provide CMP (crypto-mining processor) cards for professional miners and low hash rate GeForce cards for our players. This allows us to direct this offer towards our players. Low hash rate cards shipped in the second quarter accounted for over 80% of our Ampere desktop GPU shipments in the second quarter. And we are at the start of the process for Ampère architecture. Now we are starting to see those GeForce retail prices starting to go down directionally, but we need to see some extra work to bring the retail prices down.
The host then asked Ms Kress what she thought of Tesla’s D1 chip and its launch at a time when the automotive semiconductor industry is moving from simple infotainment systems to autonomous driving and if any other companies will follow suit.
His response was as follows:
So, when you think of our automotive business, there are currently two points of interest. One, the legacy infotainment business. We have been part of this company for over a decade. This is an area that is likely to experience a decline over the next year or so. As we move forward, we focus on non-goods and autonomous driving. We have talked about this for the past two quarters. Our pipeline, our revenue pipeline is over $ 8 billion through 2027. A good part of that is our focus in terms of the deal we have with Daimler for their entire fleet of cars at. over the next few years.
You will see an inflection point, probably within a year and a half or so, in terms of our autonomous driving solutions, and in terms of the market both for the passenger parts, but also for the robotic axis and our [INAUDIBLE]. We focus on an end-to-end platform. We are focused on an end-to-end platform that starts even today, as automakers have infrastructure inside their data centers to build and develop for what they will have in terms. of autonomous vehicles in the coming decade. And we provide probably the highest performance, but also a complete solution from the overall hardware inside a car and the software to move forward.
In Tesla’s case, they really demonstrated, or validated, our full-stack approach and the importance of our innovation across systems, networks, software, in terms of what we put together. It’s interesting to see Tesla in terms of overall performance, but you have to keep in mind that NVIDIA is still working on our roadmap every day and I’m sure there will be more that we can show at both times. our clients and our as well as our investors ….