Case study: Nvidia, a $1 trillion company, from chip maker to the world's leading AI platform
On May 30th, 2023, Nvidia was the latest company ranking as the sixth public company in the world valued at over $1 trillion joining the Trillion dollar club as Apple, Microsoft, Saudi Aramco, Alphabet, and Amazon. Its value has risen more than doubled since the most famous generative AI application, ChatGPT launched 6 months ago.
The Transformative Impact of Generative AI
(Figure 2: NVIDIA's CEO, Jensen Huang, the keynote at 2023 Computex in Taiwan)
Generative AI is a game-changer in today's world, similar to the phenomenon of the iPhone released in 2007.
65% of current internet traffic is from video calls that rely on compression and decompression techniques, the same techniques since the world's first picture phone was launched in 1964.
What will happen when Generative AI transforms various types of information, including text, audio, image, 3D, Video, DNA, protein, molecule, and animation?
Nvidia is now at the center of the AI revolution by enhancing its GPUs capabilities to accelerate computing.
From Producing GPUs to the Leader in AI Era
Founded in 1993, Nvidia is a semiconductor company. Since 1999, the company’s been driven by producing graphic processing units (GPUs) from the Gaming and Professional Visualization markets to diverse sectors like Data Center, Automotive, Healthcare, and Manufacturing.
As the market leader, Nvidia has dominated new emerging markets over time. The company has leveraged its core business, GPUs’ computational capabilities, to machine learning, AI, cryptocurrency mining, and the metaverse. Meanwhile, Nvidia also continues to drive technological advancements and dominate the semiconductor market.
Nvidia’s Transformation Journey
Nvidia succeeded in completing digital transformation by transforming the company from the existing core business and creating new changes in the market or industry to create new growth with new business models.
How Nvidia succeed in completing digital transformation can be explained by the Transformer Map as follow:
Every Business Can Create New Growth
Nvidia is a good digital transformation case study for creating new growth in the business. Considering the new competitive landscape factors, which are shown below, will help you capture new opportunities and alternatives to transform your business to find the right ‘New Growth Engine’ and this will lead you to design your own ‘Transformer Map’ to counter whether it's an opportunity or challenge to transform.
Now we are all in a new era of artificial intelligence (AI). Have you found the “New Growth Engine” for your new journey yet?
