Nvidia packs Amazon Web Services in latest push for data centers


Nvidia Corp. Monday tried to show the progress of its new chips, while the general manager, Jensen Huang, was giving the kickoff to the company's annual conference in his hometown.

In a keynote address at the GTC 2019 conference in San Jose, California, Mr. Huang described in detail new developments for Turing-based equipment that Nvidia

NVDA, -0.51%

has been deployed in the past year. Most important was the announcement by Nvidia that Amazon.com Inc.

AMZN, + 1.74%

will now use its T4 data center chips, the biggest name that has not yet publicly signed with Nvidia.

The chip maker based in Santa Clara, California, has announced that its graphics processing units, or Tensor Core T4 GPUs, will be deployed to Amazon Web Services via Elastic Compute Cloud G4 in the coming weeks. While other public cloud services have shrunk their market share in recent years, Amazon's AWS still ranks among the world's leading market share players in public cloud services.

"If you want to reach a lot of people and quickly, with the biggest computing engine on the planet, there is a way to do it," said Huang, announcing the contract with AWS. address stretched for two hours.

In September, Nvidia announced that Alphabet Inc.

GOOG, -0.02%

GOOGL, -0.15%

Google Cloud Platform would use T4 chips in its data centers. In addition to Google, Ian Buck, general manager of Nvidia's accelerated computing, said in a briefing that Baidu Inc.

BIDU, + 0.40%

had adopted T4 chips for its data centers and Alibaba Group Holding Ltd.

Baba + 0.48%

also planned to announce the adoption of T4 chips, the latest notable case being that of Microsoft Corp.

MSFT, + 1.43%

Azure cloud service.

Nvidia was looking to weather a difficult period until 2018, when the company twice cut its outlook for the last quarter of the year due to weak sales in China and sales of data centers and data centers. games. Part of the problem is the slow adoption of the company's latest Turing chips, and Monday's keynote speech was used to present more plans and adoption of the new equipment.

Nvidia also announced that more and more video game companies are adopting real-time ray tracing, the most important advance of the new Turing gaming chips, which was also linked to another conference taking place at one hour in the morning. North: The annual Game Developers conference in San Francisco. Nvidia said that Unreal Engine and Unity – two of the most popular game engines, which are important centers for designers – had adopted real-time ray tracing.

Nvidia also announced a new partnership with Toyota Motor Corp.

TM + 0.45%

for his standalone driving offers, Huang calling him "an end-to-end contract" including equipment, tests, etc.

Earlier in the month, Nvidia announced its largest acquisition to date, using almost all the money it had available as part of a $ 6.9 billion bid for Mellanox Technologies Inc. .

MLNX, -0.19%

. Nvidia Huang said the decision was aimed at doubling the company's bet on data centers, which account for 31 percent of its sales, according to the company's latest quarter. This represents an increase from 21% of sales in the previous year's quarter.

Nvidia shares fell 0.5% to end the regular session at $ 168.95, while PHLX Semiconductor

SOX, -0.26%

finished down 0.3% and S & P 500 index

SPX, + 0.37%

closed up 0.3%. Equities rose about 0.4% after trading hours as the keynote ended.

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