SANTA CLARA (dpa-AFX) - Nvidia (NVDA) CEO Jensen Huang Monday announced several new initiatives on Monday aimed at reinforcing the company's leadership in AI and computing.
The highlight was the introduction of the 'NVLink Fusion' program, which enables customers and partners to connect non-Nvidia CPUs and GPUs alongside Nvidia's own products using NVLink technology.
Previously, NVLink-a data transfer technology designed to connect Nvidia GPUs and CPUs-was exclusive to Nvidia-made chips. Huang explained at Computex 2025 in Taiwan that NVLink Fusion allows the construction of semi-custom AI infrastructures, not just chips. This program facilitates combining Nvidia processors with different CPUs and ASICs, leveraging the NVLink ecosystem for improved performance and flexibility.
Nvidia revealed that key AI chipmaking partners in NVLink Fusion include MediaTek, Marvell, Alchip, Astera Labs, Synopsys, and Cadence. Major customers like Fujitsu and Qualcomm Technologies will be able to connect their third-party CPUs with Nvidia GPUs in AI data centers.
Ray Wang, a semiconductor analyst, noted that NVLink Fusion signals Nvidia's strategy to capture market share in data centers traditionally dominated by ASICs, Nvidia's competitors. Although Nvidia leads in GPUs for general AI training, competitors such as Google, Microsoft, and Amazon develop their own custom chips for specific uses. Wang highlighted that NVLink Fusion positions Nvidia as the hub of next-gen AI systems, even when those systems include non-Nvidia chips, enabling broader customer integration.
Wang also said that if NVLink Fusion gains widespread adoption, it could expand Nvidia's influence by fostering partnerships with custom CPU and ASIC developers in AI infrastructure.
However, Rolf Bulk, an equity research analyst, warned that NVLink Fusion might reduce Nvidia's CPU demand by allowing customers to use alternative processors. Despite this, Bulk emphasized that the increased system-level flexibility enhances Nvidia's GPU competitiveness against emerging architectures, helping maintain its central role in AI computing.
Notably, Nvidia competitors like Broadcom, AMD, and Intel have not joined the NVLink Fusion ecosystem.
Monday, NVDA closed at $135.57, up 0.13%, and is currently trading after hours at $135.54, down 0.02%, on the Nasdaq Global Select Market.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
