Today, we know how profitable the AI business has been for NVIDIA, solely due to sales of its H100 GPU. Specifically, market analyst Omdia has revealed that NVIDIA has sold at least 650,000 units of this AI-focused GPU.
It’s important to bear in mind that we’re talking about selling over half a million GPUs in just three months. And this comes despite the United States’ bans on shipping its most powerful AI GPU to the Chinese market. Regardless, it’s evident that NVIDIA is experiencing its best moment, similar to what happened with cryptocurrency mining. However, AI is here to stay and continues to grow.
META and Microsoft lead the way in advancing the field of AI
According to data provided by Omdia, META (Facebook) and Microsoft accounted for 300,000 NVIDIA H100 GPUs purchased together. Both obtained equal amounts: 150,000 units each. Trailing behind are Google, Amazon, Oracle, and China’s Tencent, tied with 50,000 GPUs purchased each.
Cloud expert CoreWeave acquired 40,000 of these GPUs, closely followed by Chinese companies Baidu and Alibaba with 30,000 and 25,000 units purchased, respectively. Lambda Labs and ByteDance bought 20,000 units each, and Tesla came in last with 15,000 units acquired. All these brands contribute to the 650,000 GPUs sold by NVIDIA in a single quarter.
Omdia believes that NVIDIA’s H100 and A100 computing GPUs will surpass half a million units sold in the fourth quarter of 2023. Meanwhile, demand for H100 and A100 GPUs is so strong that the delivery time for GPU servers is up to 52 weeks. Omdia forecasts server shipment trends for 2023 will range between -17% and -20% YoY, while server revenue trends for 2023 will range between +6% and +8% YoY.
NVIDIA is earning millions from H100 GPU sales for AI
For context, during the third quarter of this year, NVIDIA reported revenue of $18.12 billion. Out of this, only $2.856 billion came from their gaming division. Their most profitable business, Data Centers, reported $14.514 billion.
In other words, of the $18.12 billion, 80.13% comes from the Data Centers division, while the gaming division accounts for 15.76%. Perhaps most interestingly, the remaining 4.11% comes from the automotive market, “OEM and others,” and professional virtualization.
NVIDIA’s CFO, Colette Kress, states, “Data center computing product sales grew by 324% year over year and by 38% sequentially, largely reflecting the strong reception of our HGX platform based on the Hopper GPU architecture.” According to her, “Our sales of data center products based on the Ampere GPU architecture were significant but declined sequentially as we approached the end of this architecture.”
This article originally appeared on El Chapuzas Informático.
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