Nvidia(US:NVDA) The Motley Fool·2025-05-21 07:35Core Viewpoint - Nvidia has announced the opening of its NVLink technology to other chipsets through a new product called NVLink Fusion, which can be seen as a strategic move to expand its market presence and address competition in the AI accelerator space [1][3][15]. Group 1: NVLink Technology Overview - NVLink is an interconnect technology that links GPUs within a server, while Infiniband connects whole servers together [2]. - Nvidia's recent product, NVLink Fusion, allows system manufacturers to integrate NVLink technology in servers that do not contain Nvidia chips [3]. Group 2: Partnerships and Collaborations - Key partners for NVLink Fusion include Marvell Technologies, which produces custom AI accelerators and data center interconnect technologies [4]. - Other partners mentioned include Fujitsu and Qualcomm, who are looking to enter the data center CPU segment and have partnered with Nvidia for NVLink Fusion [5]. - Electronic design automation software companies like Synopsis and Cadence Design Systems are also involved, assisting chipmakers in designing chipsets and systems [6]. Group 3: Market Dynamics and Competition - Nvidia's decision to open up NVLink technology may stem from its networking equipment sales lagging behind chip sales, with data center semiconductor revenue up 116% while networking revenue was down 9% [8][10]. - The rise of custom-designed AI accelerators is a significant trend, with the market share for custom ASICs projected to increase from 22% in 2023 to 30% in 2025, while GPUs are expected to decrease from 72% to 65% [13]. Group 4: Implications for Nvidia - By opening up NVLink technology, Nvidia aims to gain exposure to cloud giants' ASIC systems, which are likely to gain market share over time [15]. - This move may indicate a recognition of the competitive landscape, where cloud companies are investing in their own silicon to save costs, potentially impacting Nvidia's growth and margins [16].