NVIDIA (NVDA.US) AI "New Ace" Arrives! Vera Rubin Now Delivered to OpenAI and Other Giants, Next Round of Computing Power Competition Begins

According to Zhitong Finance APP, Nvidia (NVDA.US) has announced that computing systems based on its latest Vera Rubin architecture have already been delivered to several major artificial intelligence (AI) companies and will soon be put into actual operation. The company emphasized that the new generation of products is progressing as scheduled and is expected to further consolidate its leading position in the AI chip market.

At a media briefing held at the company’s headquarters, Ian Buck, Nvidia’s Vice President and General Manager, stated: "We have fully entered mass production; all major clients are deploying related systems."

The progress of the Vera Rubin product launch has been closely watched by investors and analysts, with the market previously concerned about potential delays or production bottlenecks. Although Nvidia CEO Jensen Huang had previously dismissed these concerns, the market remains cautious about whether Nvidia can maintain its technological advantage as competitors accelerate their catch-up efforts.

Data shows that the benchmark index for the chip industry has risen by about 66% so far this year, but Nvidia’s share price has only increased by around 9%. In contrast, shares of Intel (INTC.US), Arm Holdings (ARM.US), and AMD (AMD.US) have all more than doubled.

Currently, Nvidia remains the dominant supplier in the AI accelerator market. AI accelerators are primarily used in data centers to run artificial intelligence software. However, AMD and Broadcom (AVGO.US) are actively competing for more market share, and large data center customers like Amazon (AMZN.US) are also developing their own chips to reduce reliance on Nvidia’s products.

Against this backdrop, Nvidia faces pressure to prove that its new products can be delivered on time and outperform competitors. The company held several briefings at its Santa Clara, California headquarters, emphasizing that the new generation of devices not only offers higher performance but also significantly eases deployment complexity.

Nvidia stated that OpenAI, the developer of ChatGPT, plans to adopt Vera Rubin systems on a large scale in the third quarter. Companies such as CoreWeave (CRWV.US), Google Cloud under Alphabet (GOOGL.US, GOOG.US), Microsoft Azure (MSFT.US), Meta Platforms (META.US), and Dell Technologies (DELL.US) have also started using the related systems.

Although investors have been relatively cautious about Nvidia’s stock performance this year, the market expects its revenue growth to further accelerate. Analysts expect Nvidia’s revenue for the current fiscal year to increase by 82% year-over-year to $393.4 billion, up from a previous growth rate of about 65%; total revenue for the next fiscal year is expected to surpass $500 billion.

Nvidia is expected to contribute roughly one-third of global chip industry sales while continuing to maintain a high level of profitability. The market anticipates that the company’s gross profit margin for this fiscal year will reach around 75%.

Nvidia executives stated that the company is launching a series of new technologies to improve product performance and deployment efficiency by enhancing hardware design, manufacturing processes, and cooling systems.

In previous generations of products, the computing trays housing AI accelerators, central processing units, and network components often required manual assembly, including the connection of a large number of cables. This process was time-consuming, particularly when factory workers were just becoming familiar with new designs, resulting in relatively high error rates.

The new generation of systems has essentially eliminated internal cabling, relying mainly on circuit boards or specially designed connectors to complete component interconnections. Nvidia noted that tasks previously requiring hours of manual labor can now be completed by robots in just minutes, with a significant reduction in failure rates.

This improvement is partly due to the comprehensive adoption of liquid cooling technology for key components. Liquid cooling systems reduce the need for fans and airflow space, thereby increasing the density of components within the cabinet.

Nvidia stated that the new generation AI accelerator cabinet, NVL72, features Token processing capabilities that reach 10 times that of the previous generation. A Token is the basic unit for measuring AI computational tasks, and the relevant performance data was provided by data center operator CoreWeave.

Nvidia also made a rare direct comparison of the new product’s performance with that of its competitors. The company claimed that when running Python programming language code, the new Vera processor delivers speeds up to 1.8 times that of AMD’s Turin processor. Both OpenAI and Anthropic are early adopters of this product.

In addition, Nvidia has established multiple test facilities near its Silicon Valley headquarters for rapid development and validation of the hardware, software, and supporting technologies required for AI data centers. Customers can test software and services on new hardware at these facilities prior to official delivery.

In a small test data center in Sunnyvale, California, Nvidia engineers showcased a group of Vera Rubin servers currently being tested by OpenAI. Through this, Nvidia is sending a clear signal that the new generation of AI computing devices is ready to handle the world’s most critical artificial intelligence workloads.