Nvidia CEO Jensen Huang claims $200B market for new Vera CPU
During the earnings call, Nvidia's CEO Jensen Huang revealed that the new Vera CPU creates a "brand new $200 billion TAM" for the firm. Launched in March, Vera is touted as the first CPU specifically designed for agentic AI. Huang noted that Nvidia has already achieved $20 billion in sales of standalone Vera CPUs this year. This announcement followed Nvidia's record quarterly revenue of $81.6 billion, with a forecast of $91 billion for the upcoming quarter. Huang emphasized Vera's role as a significant growth catalyst, highlighting partnerships with major hyperscalers and system manufacturers. Unlike traditional cloud CPUs, Vera is optimized for rapid token processing for AI agents, addressing concerns over competition from firms like Amazon Web Services, which recently contracted with Meta for AI CPUs. Huang anticipates billions of AI agents utilizing CPU-driven PCs, increasing CPU demand.
Key facts
- Nvidia CEO Jensen Huang announced a $200 billion total addressable market for the new Vera CPU.
- Vera was introduced in March and is described as the world's first CPU purpose-built for agentic AI.
- Nvidia reported record quarterly revenue of $81.6 billion and forecast $91 billion for the next quarter.
- Nvidia has already sold $20 billion worth of standalone Vera CPUs this year.
- Every major hyperscaler and system maker is partnering with Nvidia to deploy Vera.
- Amazon Web Services recently signed a contract with Meta for millions of its homegrown AI CPUs.
- Huang predicts billions of AI agents will use CPU-driven PCs.
- Vera is designed to process tokens as fast as possible for AI agents.
Entities
Institutions
- Nvidia
- Salesforce
- Amazon Web Services
- Meta
- Intel
- AMD