Nvidia CEO Huang Renxun said in an interview on October 2 that the company's Blackwell AI chip is currently at full production, and the market demand for this chip has reached a "crazy" level. "Everyone wants to get the most, everyone wants to be the first to get the chip," said Huang Renxun. Nvidia's stock price rose about 1.6% after hours. Nvidia is expected to start mass production of Blackwell in the fourth quarter. The new processor's performance is 2.5 times that of Nvidia's Hopper chip, which was launched two years ago. (CNBC)

In terms of the production of Blackwell chips, the total testing capacity is currently about 250,000 Blackwell chips per month, and it is expected to reach a utilization rate of 60% in the fourth quarter of 2024. This means that the output of Blackwell chips may reach 450,000 in the fourth quarter of 2024, bringing Nvidia more than $10 billion in revenue opportunities!

In 2025, with the widespread application of Blackwell chips, the demand for CoWoS production capacity will further increase.

As Nvidia's new generation of AI processors, the mass production of Blackwell chips means that more AI applications can utilize the powerful computing power of this chip, thereby improving the speed and efficiency of AI model training and inference. The mass production of Blackwell chips can support more AI hardware products, such as AI accelerator cards, edge computing devices, and in-vehicle computing platforms for autonomous vehicles, to meet the AI hardware needs in different scenarios.

Nvidia's leading position in the AI chip field consolidates its global market competitiveness and promotes the technological progress of the entire industry mainly in the following aspects:

1. Leading technological innovation: Nvidia's continuous innovation in the field of AI chips, such as the launch of high-performance and high-energy efficiency ratio Blackwell chips, has set a new technological benchmark for the industry, promoting the overall progress of AI chip technology.

2. Increasing market share: By providing advanced AI chips, Nvidia can attract more customers and partners, increasing its share in the global AI market, thereby enhancing its market competitiveness.

3. Building an ecosystem: Nvidia not only provides hardware but also builds a strong software ecosystem, including CUDA, TensorRT, NGC, etc., which helps to reduce the threshold for developers and attract more developers to join its platform.

4. Setting industry standards: Nvidia's technological leadership often influences the formulation of industry standards, making its technology the industry standard, thereby enhancing its market discourse.

5. Expanding the partner network: Nvidia has established a wide range of partner networks by cooperating with companies of various sizes, including cloud computing service providers, car manufacturers, research institutions, etc., which helps to promote the rapid dissemination and application of its technology.

6. Competitive stimulation: Nvidia's success has inspired other chip manufacturers to increase their R&D investment in the AI field, promoting them to launch more competitive products, thereby promoting the competition and innovation of the entire industry.

7. Talent attraction: Nvidia's leading position has attracted a large number of top talents in the AI field, providing a human resource guarantee for its continuous innovation.

8. Attracting capital: Nvidia's success in the AI chip field has also attracted the attention and investment of the capital market, providing financial support for its R&D and market expansion.

9. Optimizing the global supply chain: Nvidia optimizes its supply chain on a global scale to ensure that its products can quickly respond to market demands, improving the efficiency and response speed of the supply chain.

10. Formulating market strategies: Nvidia can use its market leadership to formulate effective market strategies, such as pricing strategies, market segmentation strategies, etc., to maintain its competitive advantage.

Nvidia's leading position in the AI chip field not only helps its own market competitiveness but also motivates the competition and cooperation of the entire industry through technological innovation, ecosystem construction, and partner network expansion, promoting the rapid development and widespread application of AI technology.

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