Nvidia is quietly building a multibillion-dollar behemoth to rival its chips business
Nvidia's networking business raked in $11 billion last quarter despite getting significantly less fanfare than chips and gaming.
TL;DR
- Nvidia's networking business is its second-largest revenue driver, reporting $11 billion last quarter, a 267% year-over-year increase.
- The business segment provides the technology needed to build "AI factories," which are data centers designed for training AI models.
- The networking division grew significantly after Nvidia acquired Mellanox, an Israeli networking company, in 2020 for $7 billion.
- Nvidia's networking strategy involves selling a full-stack solution through partners, a unique approach in the market.
- Recent announcements at the Nvidia GTC conference include the Nvidia Rubin platform for AI supercomputers and updates to their Spectrum-X Ethernet Photonics switches.