Making ChatGPT Available in the Cloud丨Nvidia’s DGX Cloud to Democratize Access to Generative AI on Major Cloud Platforms

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Nvidia, the leading graphics card and AI computing company, has announced a new deal called DGX Cloud, which will make its brand of generative AI available through major cloud providers. Customers can access Nvidia AI Enterprise for training and deploying large language models or other AI workloads, while at the pre-trained generative AI model layer, the company will offer customisable AI models to companies that wish to build proprietary models and services.

The DGX Pods from Nvidia are GPU-based compute systems that the company sells for creating AI supercomputers. Now, the same processors, networking, and Nvidia’s comprehensive AI Enterprise software stack will be available through web browsers, thus eliminating the need for large hardware investments for data centers. The goal is to democratize the access of this infrastructure and make this capability available to every enterprise, every company in the world that would like to create proprietary data, according to Nvidia CEO Jensen Huang.

Nvidia’s announcement comes after the company’s fourth-quarter earnings, which exceeded expectations despite a decrease in sales. The data center business continued to do well, and the company gave good guidance for the first quarter of 2023. However, its R&D expenses have surged by 33% over the past year, raising questions about its future developments. The company has been steadily increasing its R&D expenses over the years but at a much slower pace. The sudden rise in R&D begs the question of what Nvidia is working on. Going back through historical earnings reports, there is no precedent for this level of a rise.

Nvidia’s new deal will be available through major cloud providers such as Oracle Cloud infrastructure, Microsoft Azure, and Google Cloud Platform, with others on the way, according to Huang. However, AWS is notably absent. Nvidia reps declined to comment further, but the details will be made available at Nvidia’s upcoming GTC conference in March.

Anshel Sag, a principal analyst with Moor Insights & Strategy, believes that DGX technology is not designed for the masses, but it will democratize access to AI technology more than it has in the past. “I think this might be more of a software solution leveraging what the company already has on the hardware side, making it more accessible to anyone already used to using the cloud for AI workloads,” he said.

In conclusion, Nvidia’s new deal will make its brand of generative AI accessible to every company in the world that wants to create proprietary data. While the sudden rise in R&D expenses raises questions about Nvidia’s future developments, its DGX Cloud deal is expected to democratize access to AI technology more than it has in the past.

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