Sovereign AI is the category that could reduce NVIDIA’s reliance on large cloud companies (Microsoft, Google, Amazon).
Here’s what the company had to say about that segment on its call:
“Sovereign AI is on the rise as the nation’s ability to develop its own AI using domestic infrastructure, data and talent presents a significant opportunity for NVIDIA. NVIDIA is at the forefront of landmark initiatives across the U.K. and Europe.
The European Union plans to invest EUR 20 billion to establish 20 AI factories across France, Germany, Italy and Spain, including 5 giga factories to increase its AI compute infrastructure by tenfold. In the U.K., the AI supercomputer powered by NVIDIA was unveiled at the country’s most powerful AI system, delivering of AI performance to accelerate breakthroughs in fields of drug discovery and climate modeling.
We are on track to achieve over $20 billion in Sovereign AI revenue this year, more than double than that last year.”
So, sovereign AI is a $20 billion opportunity and looks to be scaling at growth rates above overall company revenue.