Nvidia see flat year, looks to ‘post-pandemic downturn’ recovery with cloud AI

Nvidia see flat year, looks to ‘post-pandemic downturn’ recovery with cloud AI

Business news |
By Nick Flaherty

Nvidia has seen a flat year in 2022, with profits cut by half as it blames the post-pandemic downturn. However the revenue of $26.97 billion, the same as 2021, is still up from the $16bn in 2020 at the start of the pandemic.

Turnover for the quarter was $6.05 billion, down 21% from a year ago and up 2% from the previous quarter.

“AI is at an inflection point, setting up for broad adoption reaching into every industry,” said Jensen Huang, founder and CEO of Nvidia. “From startups to major enterprises, we are seeing accelerated interest in the versatility and capabilities of generative AI.

“We are set to help customers take advantage of breakthroughs in generative AI and large language models. Our new AI supercomputer, with H100 and its Transformer Engine and Quantum-2 networking fabric, is in full production. Gaming is recovering from the post-pandemic downturn, with gamers enthusiastically embracing the new Ada architecture GPUs with AI neural rendering,” he said.    

This AI access is key to growth says Huang.

The company is working with cloud service providers to offer its chips as browser- based AI-as-a-service. This will allow enterprise customers easy access to each layer of AI – the AI supercomputer, acceleration libraries software or pretrained generative AI models – as a cloud service.

Using a browser, they will be able to engage an Nvidia DGX AI supercomputer through the DGX Cloud, which is already offered on Oracle Cloud Infrastructure, with Microsoft Azure, Google Cloud Platform and others expected soon. At the AI platform software layer, they will be able to access AI Enterprise for training and deploying large language models or other AI workloads.

The AI-model-as-a-service layer will offer its NeMo and BioNeMo customizable AI models to enterprise customers who want to build proprietary generative AI models and services for their businesses.

Data Centre revenue for the year was up 41% to a record $15.01 billion, while gaming was down 27% to $9.07 billion after the pandemic boom.

For the Professional Visualization business, aka the industrial metaverse, revenue was down 27% to $1.54 billion. This includes the Omniverse Enterprise to help teams build connected 3D pipelines and develop large-scale 3D works through increased performance, generational leaps in real-time RTX ray and path tracing, and streamlined workflows.

A collaboration with Lockheed Martin will build a digital twin of global weather conditions, enabling the U.S. National Oceanic and Atmospheric Administration to better monitor global environmental conditions, including extreme weather events.

In the automotive and embedded business, Q4 revenue was a record $294 million, up 135% from a year ago and up 17% from the previous quarter. Fiscal-year revenue rose 60% to a record $903 million.

A key deal was the strategic partnership with Foxconn to develop automated and autonomous vehicle platforms based on DRIVE Orin and DRIVE Hyperion. The company also released major updates to its Isaac Sim robotics simulation tool, including AI capabilities and cloud access, enabling the building and testing of virtual robots in realistic environments.

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