Nvidia has profited immensely from the AI boom, with its share price increasing by 181% since the start of the year. The company’s dominance in the AI hardware space is largely due to its superior graphics processing units (GPUs), which are the foundation of the widespread adoption of AI tools.
Despite its success, Nvidia faces several challenges, including high production costs and environmental concerns due to the energy-intensive nature of AI technology. Additionally, the company’s competitors are working to bridge the gap in the AI semiconductor market.
Startups such as SiMa.ai, Etched, and Mythic are gaining attention for their Neural Processing Units (NPUs), which offer a lower-power, more specialized alternative to GPUs. These NPUs are smaller, less expensive, and more energy-efficient, making them a viable alternative to GPUs in certain applications.
Key Players:
These startups are thriving in areas where Nvidia is vulnerable, offering cost-effective and energy-efficient alternatives to GPUs.