Nvidia will now make new AI chips every year
Will Nvidia's Annual AI Chip Release Boost Tech?
Nvidia, having profited $14 billion in a single quarter from AI chips, plans to accelerate its production cycle, releasing new chips annually instead of biennially. This shift, announced by CEO Jensen Huang, aims to keep pace with the rapid advancements in AI technology. The company will also expedite the development of other chip types, including CPUs and GPUs, to maintain this new yearly rhythm. This strategy is expected to meet the soaring demand for AI capabilities across various industries, including automotive and consumer internet companies.
What is the projected frequency of new chip designs by Nvidia following the release of the Blackwell chip?
Nvidia plans to design new chips every year instead of once every two years, according to CEO Jensen Huang2. This means that after the release of the Blackwell chip, we can expect a new chip design every year moving forward. Huang also mentioned that Nvidia will accelerate the development of other types of chips, including CPUs, GPUs, networking NICs, and switches, to match this new cadence.
How does Nvidia's new policy of releasing a chip every year compare to their previous schedule?
Nvidia's new policy of releasing a chip every year marks a significant change from their previous schedule. Until now, Nvidia had been producing a new architecture roughly once every two years. For example, they revealed Ampere in 2020, Hopper in 2022, and Blackwell in 2024. However, with the increasing demand for AI technologies and the success of their AI chips, Nvidia has decided to accelerate their production process.
Nvidia CEO Jensen Huang announced on the company’s Q1 2025 earnings call that they will now design new chips every year instead of once every two years2. This new strategy is intended to keep up with the rapidly evolving AI industry and maintain Nvidia's competitive edge. Huang also mentioned that other types of chips Nvidia produces, such as CPUs, GPUs, networking NICs, and switches, will also be accelerated to match this new cadence.
This shift in production schedule is expected to help Nvidia better meet the growing demand for AI-capable chips and maintain its position as a leader in the AI industry. It will be interesting to see how this change affects Nvidia's future growth and impacts the AI market as a whole.