NVIDIA, despite having share prices on the rise, may be facing its toughest challenge yet: a new startup develops AI algorithms that eliminate the need for processing resources.
It’s been over 24 years since NVIDIA started manufacturing graphics processing chips–from the very first NV1 to the latest Tegra X1–participating in the history of tech and making a lot of money in the process.
Driven by robust growth in the three main segments (gaming, data management, and automotive), NVIDIA released the results of first-quarter financials, reporting revenue of $1.94 billion, up 48% from last year ($1.30 billion). Against analysts’ estimates of $0.67 per share on sales, NVIDIA shares scored $0.85 after the publication of results of Q1 fiscal year 2018.#NVIDIA #success #threatened by #Brodmann17Click To Tweet
NVIDIA, the Three-Legged Giant
Accounting for 53% of total revenue, gaming remains NVIDIA’s golden goose.
The gaming segment of NVIDIA’s business drives the whole corporation with nearly 50% year over year growth in the first quarter of 2017.
Besides PCs, gaming consoles are a main gateway for NVIDIA’s processors. The Tegra X1-powered Nintendo’s Switch has sold close to 1 million units in one month, with projections of 13 million in sales by April 2018.
Data centers make up NVIDIA’s second-highest revenue stream, accounting for over 21% of the company’s revenue, or $409 million. Last quarter, data center revenue grew by 186% compared to the same period in 2016.
NVIDIA is establishing itself on the market with its automotive solutions.
Can AI Replace Processors? Brodmann17 Thinks it Could
Conventional processors may have already reached their apex.
A new startup, going by the name Brodmann17 (which refers to the part of the cerebral cortex that takes visual input), soon might be more than just a minor competitor, but rather a serious threat to NVIDIA’s raison-d’être: processors.
Founded in 2016, the Israeli startup counts as investors Samsung Next and Sony, which contributed to its $1.6 million USD seed funding round. Brodmann17 will use the funds to develop deep learning algorithms that don’t require big processing power, while still increasing performance efficiency.
Standard CPUs and GPUs are expensive and require a lot of energy, preventing some devices (smartphones, cameras, and battery-powered robots) from getting access to deep learning algorithms.
Primarily designed for cameras, smartphones, and products that use computer vision and increased reality like SnapChat, Brodmann17’s image-processing technology is 20 times faster than conventional processors, using only 5% of processing resources.
As of now, Brodmann17 has yet to reveal its development plan or when its technology would be commercially available. But the startup is still in its seed round, meaning there’s at least a prototype or a functioning product that was deemed viable.
Look out, NVIDIA.