“Accelerated computing and generative AI have hit the tipping point,” said CEO Jensen Huang on Nvidia's surge in sales.

Christine Horton, Contributing Editor

February 22, 2024

2 Min Read
Nvidia artificial intelligence boosts revenue
Gunay Rahimova/Shutterstock

Demand for artificial intelligence (AI) propelled Nvidia’s revenue in the fourth quarter to $22.1 billion, up 22% from the third quarter, and up a whopping 265% from a year ago.

Elsewhere, its data center business posted revenue of $18.4 billion, up 27% from Q3, and up 409% from a year prior. Overall, Nvidia posted record full-year revenues of $60.9 billion, up 126%.

“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” said Jensen Huang, founder and CEO of Nvidia.

Nvidia's Jensen Huang

Huang said Nvidia’s data center platform is being driven by demand for data processing, training and inference from large cloud-service providers and GPU-specialized ones, as well as from enterprise software and consumer internet companies.

“Nvidia RTX, introduced less than six years ago, is now a massive PC platform for generative AI, enjoyed by 100 million gamers and creators. The year ahead will bring major new product cycles with exceptional innovations to help propel our industry forward,” he said.

Gen AI presents a significant opportunity for channel partners to unlock new revenue streams and drive operational efficiencies, says research firm Canalys. (Canalys and Channel Futures are both owned by Informa.)

“With an expected growth of $158.6 billion by 2028, channel partners can capitalize on this opportunity by offering AI services, developing AI software, offering advanced data services, and reselling, co-selling and upselling AI products with services around them, researchers at Canalys said.

Nvidia Collaborating With Lenovo, Dell, HPE, AWS on Artificial Intelligence

Nvidia has been rising the wave of momentum around gen AI with agreements with several leading tech vendors in recent months. It signed a deal with Lenovo to allow end users to build custom AI models with Nvidia’s AI Foundations cloud service. Those models will run with on-premise Lenovo systems, which feature Nvidia’s hardware and software designed for gen AI.

Last May, Dell announced that it would be partnering with Nvidia on Project Helix, a joint initiative to deliver generative AI to on-premise environments. Then in October, the firm announced the Dell Validated Design for Generative AI with NVIDIA for Model Customization. This helps customers more quickly and securely extract intelligence from their data. It does this with pre-trained models that extract intelligence from data without building models from scratch.

In December, HPE unveiled a gen AI computing solution it developed with Nvidia. The preconfigured data center solution puts together the HPE ProLiant Compute DL380a server with Nvidia GPUs and data processing units (DPUs). In addition, the solution uses Nvidia's Spectrum-X Ethernet networking platform that the companies say enables “hyperscale AI.”

Huang also appeared on stage at AWS re:Invent to announce new joint offerings around supercomputing infrastructure, software and services for gen AI.

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About the Author(s)

Christine Horton

Contributing Editor, Channel Futures

Christine Horton writes about all kinds of technology from a business perspective. Specializing in the IT sales channel, she is a former editor and now regular contributor to leading channel and business publications. She has a particular focus on EMEA for Channel Futures.

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