Nvidia's AI Chip Dominance Expands Beyond Data Centers

Nvidia is dominating the market for AI chips used in sovereign large language models, with 92% of such models relying on its technology.

A study by Counterpoint Research found that nearly all countries outside the US and China are using Nvidia's chips to build their own domestic AI infrastructure, including data centers and models. This trend is driven by nations seeking to reduce dependence on American technology and keep sensitive data within their borders.

Despite this dominance, Nvidia faces some competition from Advanced Micro Devices (AMD), which holds a 4% share of the market. However, AMD's small footprint could be beneficial as governments seek greater supplier diversification.

Nvidia's growing importance in AI infrastructure is also driving demand for related components such as memory, networking, cooling and power equipment. This trend is expected to continue as more countries invest in their own sovereign AI infrastructure.