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How Nvidia became a giant of the chip industry

 2 years ago
source link: https://finance.yahoo.com/news/how-nvidia-became-a-giant-of-the-chip-industry-152417992.html
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How Nvidia became a giant of the chip industry

Daniel Howley
·Technology Editor
Fri, April 8, 2022, 12:24 AM·3 min read
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It’s safe to say Nvidia (NVDA) has become a giant within the chip industry. A leader in the creation of graphics chips and cards for gaming, in addition to content creation, the company has morphed into one of the preeminent artificial intelligence processing companies on Earth.

Founded in 1993 by Jensen Huang (the company’s current CEO), Chris Malachowsky, and Curtis Priem, the trio of engineers didn’t expect the silicon they were building would eventually be chosen to power supercomputers at facilities, including The Energy Department’s Los Alamos National Laboratory.

The firm, which initially focused on gaming and entertainment products, launched its first chip, the NV1, in 1995. While it wasn’t a massive success, it did put Nvidia on video game maker Sega’s map. Sega originally considered using Nvidia’s NV2 chip in its Dreamcast console, but later abandoned the effort.

In 1996, Nvidia launched its first Microsoft (MSFT) DirectX drivers, specialized software used to render 3D graphics on Windows-based PCs. The following year, the company launched its first hit product the NV3, otherwise known as the Riva 128. Nvidia would later go on to sell a whopping 1 million units in the card’s first four months of availability, helping generate revenue for the research and development of future products.

In January of 1999, Nvidia hit the public markets at $12 per share, and by 2000, Nvidia’s market position was strong enough to swallow former rival 3DFX. The same year, Microsoft chose the chip giant to power the graphics in its first Xbox console.

Eventually, Nvidia’s graphics capabilities moved beyond gaming. In 2003, the company not only worked with Blizzard on the launch of its massively popular “World of Warcraft,” it also teamed up with NASA to create a photorealistic simulation of Mars.

Nvidia continued its work with console makers in 2005 when Sony chose the company to power the graphics in its PlayStation 3. Five years later, Nvidia became the graphics chip supplier for Audi, powering the interfaces for the automaker’s various vehicles. In 2015, the company launched its Nvidia Drive chip for powering driver assistance systems.


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