NVIDIA CEO Jen-Hsun Huang unveils next-generation AI chip Blackwell priced at $30,000-$40,000
NVIDIA CEO Jen-Hsun Huang said the company's next-generation artificial intelligence graphics processor, called Blackwell, will sell for between $30,000 and $40,000 per unit.
Holding up a Blackwell chip, Jen-Hsun Huang said, "We had to invent some new technology to make this happen." He estimated that NVIDIA spent about $10 billion on R&D costs.
The price suggests that the chip, which is likely to be in high demand for training and deploying AI software such as ChatGPT, will be priced similarly to its predecessor, the H100 (aka Hopper).
Analysts estimate that the H100 will sell for between $25,000 and $40,000 per chip. With its H100 chip representing the generation of Hopper chips launched in 2022, NVIDIA's AI chips are said to be substantially more expensive compared to the previous generation.
NVIDIA is known to release a new generation of AI chips about every two years. The latest chips like Blackwell are typically faster and more energy efficient, and NVIDIA uses the hype of a new generation release to attract orders for new GPUs.Blackwell combines two chips and is larger than the previous generation.
NVIDIA's AI chips have driven a tripling of NVIDIA's quarterly sales since OpenAI announced ChatGPT in late 2022. Most of the top AI companies and developers have been using NVIDIA's H100 to train their AI models over the past year. For example, this year Meta $Meta Platforms(META.US$ said it would buy thousands of NVIDIA H100 GPUs.
Currently, NVIDIA does not publicize the price tag of its chips. Specifically, the chips are available in a number of different configurations, and the price an end consumer such as Meta or Microsoft $Microsoft(MSFT.US$ might pay depends on a number of factors, such as the number of chips purchased or whether the customer buys the chips directly from NVIDIA through a full system or through a vendor such as Dell Technologies $Dell Technologies(DELL.US$ , Hewlett-Packard $HP Inc(HPQ.US$ , or Supercomputer $Super Micro Computer(SMCI.US$ Buy the chips that build AI servers. Some servers have up to eight AI GPUs built in.
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