On the news that Nvidia will build its own server CPU based on ARM technology, Intel stock dropped to as much as 4%. Nvidia Stock was up over 2% on Monday in the trading; Nvidia is best known for graphics processors and chips for artificial intelligence, not the CPUs that drive the heart of computers.
Its first Grace server processor is its new CPU of the Data Center, a dominating computer system in a market that Intel dominates with over 90% market share according to estimates.
In 2020, Intel reported$ 26.1 billion in revenue from its data center group, up 11% year-over-year. Nvidia said that its Grace chips would use the ARM instruction set, which differs from the x86 instructions at the core of Intel processors.
Together with the GPU and DPU, Grace gives us the third foundational technology for computing and the ability to re-architect the data center to advance AI.
Jensen Huang is now a three-chip company, said NVIDIA CEO Nvidia in a statement. Nvidia said researchers including the Los Alamos National Laboratory of the U.S. Department of Energy plan to build supercomputers using the Grace chips.
Last year it was announced that it plans to buy ARM for$ 40 billion, and the company would continue to license its technology to chipmakers that rely on it, including Apple and Qualcomm.
ARM-based chips are widely used in smartphones, but are not dominant in data centers.