On November 24, 2024, Nvidia announced the launch of its new language model, NVLM 1.0, aimed at competing with industry leaders like OpenAI and Google. This model, which includes NVLM-D-72B with 72 billion parameters, is designed to analyze text and images effectively.
Nvidia's recent move comes as major competitors, including Amazon and Microsoft, invest heavily in proprietary chips and AI models to reduce reliance on external suppliers. Amazon Web Services (AWS) has introduced its own chips, Graviton4 and Trainium2, while maintaining a strategic partnership with Nvidia.
Despite the growing competition, Nvidia continues to dominate the hardware segment, with cloud providers accounting for 50% of its data center revenue in the latest quarter. The company is also diversifying its client base to mitigate risks associated with dependence on a few large customers.
The open-source nature of NVLM 1.0 allows developers to customize the model for specific projects, potentially attracting startups and independent developers. Nvidia aims to create an integrated ecosystem where its hardware and software function cohesively, reinforcing its position in the evolving AI market.