Nvidia believes the robotics market is about to explode, just like ChatGPT

Nvidia is pivoting to robotics, foreseeing market growth akin to ChatGPT's rise.

: Nvidia, valued at over $3 trillion, is transitioning from AI chips to robotics as its next growth area. With plans to launch the Jetson Thor, a new robot brain, the company aims to dominate the robotics sector. Two breakthroughs — generative AI and simulation training — are fueling this endeavor. Investments from major firms indicate significant potential, as the market is expected to grow to $165 billion by 2029.

Nvidia, a leading name in graphics cards and AI accelerators, is shifting focus towards robotics as its next major area of growth. This move is driven by Nvidia’s belief that the robotics market is approaching a major inflection point similar to ChatGPT's widespread impact. VP of robotics, Deepu Talla, highlights two key drivers: generative AI models and the ability to train robots using simulation environments.

Nvidia plans to launch Jetson Thor, part of its Jetson platform of compact AI computers, positioning it as integral to robotics. This advancement is anticipated to capitalize on the 'sim-to-real gap' accomplishments, which have progressed significantly, enabling novel applications previously infeasible. Additional recent investments, like those in the Figure AI and Apptronik startups, showcase Nvidia's emphasis on integrating its technology deeply into the robotics world.

Competing with rising AI chip contenders like AMD, Nvidia's expansion into robotics is a strategic diversification to maintain its dominance. Despite AI still comprising 88% of Nvidia’s substantial quarterly revenue of $35 billion, the robotics market is projected to expand from $78 billion to $165 billion by 2029. The influx of investment from notable figures such as Jeff Bezos, Microsoft, and OpenAI further underscores Nvidia's confidence in the sector's growing significance.

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