• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45

3

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45

3

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
TechNvidia

How Nvidia Surprised AI Experts Twice This Week

By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
December 8, 2017, 5:14 PM ET

Nvidia CEO Jensen Huang showed up at a gathering of artificial intelligence researchers in Long Beach, Calif. this week with a couple of big surprises.

One was an orchestral piece inspired by music from the Star Wars movies, but composed by an AI program from Belgian startup AIVA that—of course—relies on Nvidia chips. The music went over big with the crowd of AI geeks attending the Neural Information Processing Systems Conference, known as NIPS, including some giants in the field like Nicholas Pinto, head of deep learning at Apple, and Yann LeCun, director of AI Research at Facebook.

LeCun was quoted saying the Star Wars bit was “a nice surprise.”

Huang’s other surprise was a bit more practical, and showed just how competitive the AI chip market niche has become. Analysts say sales of specialized microprocessors for use with AI programs like machine learning and image recognition will grow astronomically from about $500 million last year to $20 billion to $30 billion within five years. As the kinds of graphics chips that were first popular with video gamers have turned out to be among the best-suited for AI programming, too, Nvidia is in the lead, chased by Intel (INTC), Advanced Micro Devices, and a host of others. Intel is developing AI-focused chips from its 2016 acquisition of Nervana Systems, while AMD has an entirely new chip design tuned for AI apps called Vega on the market this year.

Hoping to stay at the front of the pack, Huang had a new graphics card called the Titan V to show off in Long Beach. Suitable for installing in ordinary PCs, the Titan V contains Nvidia’s latest “Volta” chip design with some 21 billion individual transistors. Priced at $3,000, the Titan V comes just eight months after Nvidia unveiled its Titan Xp design based on its earlier “Pascal” chips. The new card is a little more than double the price but offers up to nine times faster performance on major AI apps like Google’s TensorFlow software, Amazon’s MXNet and Facebook’s Caffe 2, Nvidia said. The older Nvidia card competed head on with AMD’s similarly priced Vega Frontier Edition, but the Titan V may prompt the need for a higher-priced, higher-performing AMD countermove if it catches on.

Get Data Sheet, Fortune’s technology newsletter.

Chip industry analyst Patrick Moorhead, president of Moor Insights & Strategy, said the Titan V offered an “impressive value proposition,” as in some ways it could keep up with the performance of Nvidia’s highest-end Tesla V100 card that sells for $10,000 and is aimed at server computers, especially in cloud data centers. Both cards include “Volta” chips and crunch AI calculations at almost the same rate. But the more expensive card has the capability to exchange data with other, surrounding chips at a much faster rate, making it a better choice for servers that often contain four or more graphics cards.

That’s a pretty clear market distinction, according to Moorhead. The Titan V could go in a high-powered PC used by an AI scientist on a local project, while the Tesla V100 will be good for servers that handle the immense app workloads that power the voice recognition abilities of digital assistants from Google or Amazon, for example. “I don’t expect a lot of cannibalization as Tesla is more for production workloads and Titan V is more for research,” Moorhead said.

Nvidia (NVDA) wasn’t the only company making news at the NIPS conference. Tesla (TSLA) founder Elon Musk was reportedly hanging around, too. At one after-hours event, Musk said Tesla was developing its own custom AI chips, tech news site The Register reported. Musk last year hired chip design legend Jim Keller, who had been at AMD (AMD) for years, sparking speculation that the electric carmaker would go that route to enhance the self-driving capability of future vehicles.

“Jim is developing specialized AI hardware that we think will be the best in the world,” Musk said somewhat cryptically at the party, according to the tech news site.

(Update: This story was updated on Dec. 8 to correct that the Titan V card speeds up performance of major AI apps, not just Google’s TensorFlow.)

About the Author
By Aaron Pressman
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Why is it so hard to get ROI from AI? Because building from first principles isn’t easy
NewslettersEye on AI
Why is it so hard to get ROI from AI? Because building from first principles isn’t easy
By Jeremy KahnJune 11, 2026
3 hours ago
SpaceX lowballed its bankers on fees. Goldman Sachs has another way to win big
Startups & VentureFinance
SpaceX lowballed its bankers on fees. Goldman Sachs has another way to win big
By Shawn TullyJune 11, 2026
4 hours ago
Three ways that Asia’s enterprises are adopting AI—and where they are falling behind
CommentaryOracle
Three ways that Asia’s enterprises are adopting AI—and where they are falling behind
By Garrett IlgJune 11, 2026
5 hours ago
Dr. Shiv Rao speaks
Startups & VentureHealth
Abridge wants to be the operating system for medicine—and NVIDIA and Eli Lilly are helping build it
By Lily Mae LazarusJune 11, 2026
7 hours ago
Silicon Valley insiders warn U.S. defense supply chain is unprepared for modern warfare
AIBrainstorm Tech
Silicon Valley insiders warn U.S. defense supply chain is unprepared for modern warfare
By Sebastian HerreraJune 11, 2026
8 hours ago
Exclusive: Consumer device giant LG Electronics to launch blockchain to place and sell ads
CryptoBlockchain
Exclusive: Consumer device giant LG Electronics to launch blockchain to place and sell ads
By Jack Kubinec and Ben WeissJune 11, 2026
8 hours ago

Most Popular

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
1 day ago
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
Innovation
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
2 days ago
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
3 days ago
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
Environment
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
By Catherina GioinoJune 9, 2026
3 days ago
Current price of oil as of June 11, 2026
Personal Finance
Current price of oil as of June 11, 2026
By Joseph HostetlerJune 11, 2026
13 hours ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.