In July 2022, CoreWeave became one of the first partners in Nvidia’s partner network to be granted access to the H100 chip – the world’s first computer chip designed for generative AI. In early 2023, upon receiving their shipment of H100 chips, Brannin McBee, founder of CoreWeave (US) exclaimed, “this is one of the scarcest engineering resources on the planet”. Due to some customers potentially facing a six-month wait for their H100 chip orders, many AI startups feared that Nvidia could not keep up with the market demand.
Perhaps at that time, CoreWeave’s Founder had no idea that “the scarcest engineering resource on the planet” would bring forth an unprecedented opportunity for his company. From $30 million in revenue in 2022, CoreWeave’s 2023 revenue skyrocketed by nearly seventeen-fold, reaching a milestone of half a billion dollars. CoreWeave will officially join the billion-dollar company club in 2024 with projected revenue of $2 billion. The company’s valuation has also more than doubled in just one year, from $7 billion (2023) to $16 billion (March 2024).
Businesses within Nvidia’s global partner ecosystem have seen significant success following collaborations with the leading technology corporation.
Another company poised to rapidly join the billion-dollar club is Lambda (US). For the past four consecutive years, Lambda has been recognized by Nvidia as an Outstanding Partner, and they are also one of the first companies to be granted access to Nvidia’s H200 chip – the world’s most powerful AI chip to date. A representative from the company acknowledges that being included in Nvidia’s list of partners has contributed to their many successes. The company’s 2023 revenue increased more than fourfold compared to 2021, reaching $250 million. In 2024, the company’s revenue is projected to more than double again to $600 million. With a compound annual growth rate (CAGR) of 115% during the period from 2021 to 2024, the company will surpass the $1 billion revenue milestone by 2025. Most recently, Lambda was valued at $1.5 billion.
Despite partnering with Nvidia later than CoreWeave and Lambda, Taigai Cloud (established in 2022) is not far behind. Just one year after its founding, Taiga Cloud swiftly became Europe’s largest provider of innovative AI cloud services by gaining access to Nvidia’s H100 chips to serve the region’s AI development needs. At present, the company has four contracts in place to deploy over 6,000 H100 GPUs, with expected annual revenue exceeding 100 million euros. Taiga Cloud is projected to reach 345 million euros in revenue during the 2023 fiscal year (Taiga Cloud’s 2023 fiscal year ends in June 2024) and 572 million euros in revenue during the 2025 fiscal year.
The generative AI boom and Nvidia’s foresight have created a golden opportunity for businesses within Nvidia’s partner ecosystem, unlocking a brilliant future for AI. Several Asian companies are also actively marshaling all their resources to collaborate with Nvidia to seize this opportunity. YTL Power International has committed to investing $4.3 billion with a focus on developing Malaysia’s fastest supercomputers, leveraging Nvidia’s AI chips. Similarly, Yotta Infrastructure invested approximately $1 billion to purchase 32,000 H100 and H200 chips from Nvidia, fueling India’s AI growth.
Speaking at Nvidia’s GTC 2024 conference, CEO Jensen Huang asserted that generative AI will give rise to a new factory model – the AI Factory – a money-making factory. “With data and electricity as raw materials, AI Factories will produce tokenized data that will be distributed globally. This tokenized data is intangible but generates tangible value. In other words, these are money-making factories,” declared Nvidia’s CEO.
Currently, the company with a monopoly in this super AI chip market is working with influential technology partners in several countries to establish these AI Factories. Most recently, FPT joined forces with Nvidia to construct a $200 million AI factory, opening up vast possibilities for artificial intelligence in particular and technology in general in Vietnam, propelling Vietnam into the ranks of AI nations.
Commenting on this promising future, Chairman of the Board of FPT Truong Gia Binh repeatedly invoked the phrase “Amazing Future” and affirmed that “FPT wants to be a part of it”. Responding to Binh’s enthusiasm, Nvidia’s Vice President, Keith Strier, declared, “Together, we will fulfill our dreams of moving forward with numerous plans”.
