Nvidia's stock continues to show promise with a fresh, significant boost on the horizon
NVIDIA Unveils Free Language Model to Boost AI Ecosystem and GPU Demand
In a strategic move, NVIDIA, the American chip designer, has released a new language model called "Llama3.1-Nemotron-70-B-Instruct" for free, aiming to stimulate demand for its GPUs and AI infrastructure.
This high-performance, customizable language model is expected to drive demand for NVIDIA GPUs, as running Nemotron's inference and fine-tuning requires powerful hardware such as H200, H100, or A100 GPUs. As more users adopt Nemotron for synthetic data generation, reasoning tasks, and customized language model developments, they become dependent on NVIDIA's hardware stack.
By making Nemotron available for free, NVIDIA is reinforcing its market dominance in AI computing. The easy and affordable access to advanced AI models creates a strong ecosystem lock-in around NVIDIA's GPU platforms and software tools. This strategy could accelerate AI innovation and productivity, attracting startups and enterprises to NVIDIA's AI stack, promoting broader GPU usage across industries.
The market for generative AI is projected to grow at an average annual rate of 36.6% from 2024 to 2030, and Nemotron's performance in initial comparison tests has shown it outperforming competitors like OpenAI's ChatGPT and Anthropic's Claude.
Nemotron was trained using the Reinforcement Learning from Human Feedback (RLHF) method, and it is currently available open-source for free on Nvidia's website, as well as through HuggingFace or Nvidia's interface. Unlike the paid version of Claude, Nemotron can access current data and search the internet.
Nvidia aims to boost its sales with the new chip generation, Blackwell, credited to TSMC for the successful alteration of the manufacturing process. No functional changes were necessary in the manufacturing process for Blackwell, and the company expects to generate "several billion dollars" in revenue from Blackwell in the fourth quarter.
Last fiscal year, NVIDIA's profit grew by 581% to $29.8 billion, and the company's success is reflected in its strong financials, with a 122% increase in revenue and a 168% increase in net income in the second quarter. Analysts expect over $66 billion for the current year, with a 112% increase in adjusted earnings per share this year and a 40% increase next year. NVIDIA's stock hit a new all-time high of over $144.
It is important to note that neither Leon Mueller nor Bernd Foertsch, CEOs of the publisher Boersenmedien AG, disclosed any conflict of interest related to Nvidia.
[1] NVIDIA, [2] TechCrunch, [3] VentureBeat
- NVIDIA's releasing of the free language model, Llama3.1-Nemotron-70-B-Instruct, aims to spur investments in AI infrastructure by attracting startups and enterprises, especially those focusing on Generative AI, as the model's impressive performance outshines competitors like OpenAI's ChatGPT and Anthropic's Claude.
- By offering Nemotron for free, NVIDIA not only reinforces its market dominance in AI computing but also essentially supports investors in the technology sector, as the model's dependencies on NVIDIA's hardware stack are expected to drive demand for its high-performance GPUs, such as the H200, H100, or A100.
