Nvidia Crushes Global AI Chip Market With 92% Dominance

Nvidia's dominance in the AI chip market is not just limited to the US and China. According to Counterpoint Research, 92% of sovereign large language models use Nvidia's chips, with more than 80 countries outside of these two nations having developed domestic models.

However, despite these models being 'domestic,' they are often still reliant on Nvidia's chips, which are used for computing infrastructure. This is due in part to Nvidia's advanced silicon and mature CUDA software ecosystem, which makes it difficult for competitors like AMD to break into the market.

Nvidia's growing importance in AI infrastructure is driving demand beyond just GPUs into other areas such as memory, networking, cooling, and power equipment. While AMD has a small but strategically positioned 4% share of sovereign AI infrastructure, Nvidia continues to strike multi-billion dollar partnerships across geographies, making it increasingly difficult for competitors to catch up.