NVIDIA Drives $22.6 Billion In Data Center Sales With AI Revolution

(CTN News) – The AI chipmaker Nvidia Corporation (NASDAQ:NVDA) generated more than $22.6 billion in revenue from data centers, making this accomplishment a record. This achievement constitutes a milestone for the company.

It was Jensen Huang, the creator and chief executive officer of Nvidia, who made the statement that “the next industrial revolution has begun.”

“Companies and countrie s are partnering with Nvidia to shift traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence.”

Artificial intelligence is a new commodity that will deliver major productivity benefits to practically every industry. It will also assist businesses in being more cost- and energy-efficient while boosting revenue prospects.

Nvidia’s revenue climbed by 18% when compared to the fourth quarter of the previous year, and it increased by 262% when compared to the same period the year before. When compared to the previous year, the data center division of the firm saw a growth rate that was 427% more than what it had experienced during the course of the year.

What Huang described to as “strong and accelerating demand” for the Hopper platform was the key driver that drove this growth. This growth was driven by demand.

NVIDIA introduced Blackwell in March,

Which is the next version of the Blackwell platform. The company has great hopes that the utilization of the new chips will result in an even more substantial boost in revenue during the second quarter of the year.

In the context of the data center industry as a whole, expansion is now taking place with regard to the industry. The accounting firm NVIDIA PwC reported that the number of jobs associated with data centers expanded by twenty percent across the country between the years 2017 and 2021, increasing from 2.9 million to 3.5 million.

This represents a significant rise from the previous year’s total of 2.9 million. This increase was far larger than the general employment rate in the United States, which climbed by 2% whereas this rise was much lower.

There is a 7.4 percent rise in the number of auxiliary jobs that are produced for every direct data center employment that is established. This is according to the data center employment statistics.

The number of vacant spaces has hit an all-time low of approximately three percent, according to the National Association of Independent Business Owners (NAIOP), which states that this percentage has reached an all-time low. As a consequence of the broad use of artificial intelligence by both commercial enterprises and the general population, this has come about.

Three hundred and fifty thousand postings are made to X every single minute, and millions of emails are sent to it every single minute. Even in the absence of machines with artificial intelligence, this is still the case. Every every minute, more than one hundred thousand hours are spent on Zoom calls all around the world.

The number of NVIDIA users is constantly increasing.

Carrington Brown, Senior Managing Director of Development at Affinius Capital, stated in an interview with the National Association of Independent Private Organizations (NAIOP) that “this level of activity necessitates a substantial supportive infrastructure.” Brown continued by stating that this infrastructure need to be of significant importance.

In addition, institutional investors that are eager to improve their bottom line are making their way into the landscape. Those investors are coming forward at this time. It has been said by Pat Lynch, who is the managing director of the Data Center Solutions division at CBRE, that Equinix and Digital Realty are the most successful companies in the commercial real estate industry.

Carlyle, KKR, Macquarie, BlackRock, and Blackstone are some examples of companies that are supported by private equity. These companies are in close proximity to one another.

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