How Nvidia Became a Chip Industry Giant

It is clear to say that Nvidia (Nvidia) has become a giant in the chip industry. In addition to content creation, the company is a leader in the development of gaming graphics chips and video cards, and today it is one of the most prominent artificial intelligence processing companies on the planet.


NVIDIA was founded in 1993 by Jensen Huang (the company's current CEO), Chris Malachowsky, and Curtis Priem, who had no idea that the silicon they were building would eventually be chosen for supercomputers at facilities including the Department of Energy's Los Alamos National Laboratory. facilities, including the Department of Energy's Los Alamos National Laboratory.


The company, which initially focused on gaming and entertainment products, introduced its first chip, the NV1, in 1995, and while it wasn't a huge success, it did put NVIDIA on the map for video game maker Sega. Sega initially considered using NVIDIA's NV2 chip in the Dreamcast console, but later abandoned it.


In 1996, NVIDIA introduced the first Microsoft (Microsoft) DirectX driver, a software designed to render 3D graphics on personal computers with the Windows operating system. The following year, the company launched its first hit product, the NV3, also known as the Riva 128. Nvidia then sold as many as one million units of this card in its first four months on the market, generating revenue for future product development.

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In January 1999, Nvidia went public at $12 per share, and by 2000, Nvidia's market position was strong enough to swallow up its former competitor, 3DFX, and that same year, Microsoft chose the chip giant to provide graphics for its first Xbox console.


In 2003, the company not only partnered with Blizzard to launch the hugely popular "World of Warcraft" but also with NASA to create a realistic simulation of Mars.


Nvidia continued to work with the console maker when Sony chose Nvidia to provide graphics for its PlayStation 3 in 2005. Five years later, Nvidia became Audi's graphics chip supplier, providing interfaces for various Audi models, and in 2015, the company introduced the Nvidia Drive chip for drive assist systems.


In 2016, Nvidia made a full-scale entry into artificial intelligence with the DGX-1 server for artificial intelligence applications. Since then, the company has continued to invest in AI. NVIDIA's stock price was flat year-over-year, rising from $7.40 per share in 2016 to $70.25 at the end of 2018, thanks to its data center products and graphics cards for crypto mining.


Two years later, NVIDIA introduced its RTX platform, bringing real-time ray tracing technology to gaming and digital imaging. This technology makes the light in graphics applications look as realistic as real life, greatly improving immersion.


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Today, Nvidia continues to provide graphics cards for gaming PCs and consoles around the world. But it goes far beyond that. in March 2022, the company debuted discrete CPUs for data centers and announced that it will use a version of its metaverse called Omniverse to better understand climate change.


While a global chip shortage is making it difficult for consumers to get new Nvidia cards, they remain one of the most sought-after products on the market.


However, Nvidia is not the only player in the graphics chip market. AMD has its own powerful line of Radeon chips, and Intel (Intel) is developing its own discrete graphics cards for laptops and desktops, putting further pressure on Nvidia (Nvidia) to continue to maintain its leadership in graphics technology.


Nevertheless, for a company that has gone from three engineers developing graphics cards to thousands of employees developing chips for future artificial intelligence supercomputers, Nvidia is still the leader in this field.