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Datacenter momentum.

7th April 2016

NVidia’s datacenter business, which consists of the company’s Tesla GPUs and its GRID graphics virtualization platform, is still a small part of the overall company, generating $97 million of revenue during the fourth quarter, 7% of the total. NVidia is already the leading provider of accelerators in the high-performance computing markets, but the company’s focus on deep learning is starting to pay off. NVidia CFO Collette Kress explains:

“In datacenter, inclusive of Tesla and GRID, revenue rose 18% sequentially to record $97 million, up to 10% year on year. This reflects the extraordinary rise of deep learning, a field in which we are now engaged with nearly 3,500 companies and organization, as well as growth in the number of high-growth startups”.

Just a few years ago, NVidia was working with 100 companies in the area of deep learning. That number has now ballooned to 3,500, ranging from web-services providers to industrial companies. IBM announced late last year that Watson, its cognitive computing platform, will integrate NVidia’s Tesla GPUs, providing a 1.7 times performance boost. As the amount of data being generated, as well as the need to analyze that data, continues to grow, NVidia is in a good position to capitalize on these trends.

Virtual reality in the enterprise

NVidia managed to grow all of its major businesses during the fourth quarter, including its professional visualization segment, which consists of its Quadro GPUs. When it comes to virtual reality, NVidia believes that the enterprise could be a major opportunity for the company.

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