Nvidia challenges Intel directly via the Grace chip

Nvidia plans to build a server chip called Grace, which is based on British Arm technology.

This puts it in direct competition with rival Intel, and adds a layer of complexity to the antitrust review of Nvidia's $ 40 billion purchase of the Arm.

Intel is the world's largest maker of central processors for data center servers, but has seen increased competition from chips based on Arm technology.

And with the Grace server processor, Nvidia has become the largest chipset yet to challenge Intel in its core market.

Arm technology powers chips in most smartphones, and for the past several years it has been making its way into data centers.

Nvidia's entry into the market could accelerate Arm penetration of data centers.

NVIDIA chips are traditionally used as accelerators in conjunction with current Intel or AMD processors, which reduces some of the computing work from the processors and speeds up the overall computing system.

By making its own CPU, Nvidia is directly competing with Intel and AMD for the first time.

Nvidia CEO described the new server chip as the final piece of the puzzle that joins NVIDIA's graphics chips and networks to form the building block of a modern data center.

The company said the Grace server processor, released in 2023, is designed to handle tasks such as training AI algorithms.

Known for its graphic chips that improve video game playback, Nvidia has focused heavily on AI computing in recent years, helping its market value overtake Intel to become the largest US semiconductor company.

Nvidia also said: The Swiss National Center for Supercomputing is planning to build a new supercomputer called Alps, using the new Grace processor, made by Hewlett-Packard.

Nvidia acceleration chips continue to support Intel and AMD processors even in the same market.

The company is focusing on making acceleration chipsets that work with Arm processors for a year, then those that work with Intel and AMD processors next year.

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