According to Reuters, Nvidia aims to capture a slice of the booming market for custom AI chips and protect itself from the growing number of firms chasing alternatives to its products.

The Santa Clara, California-based firm controls about 80 per cent of the high-end AI chip market, a position that has sent its stock market value up 40 per cent so far this year to €1.5 trillion after it more than tripled in 2023.

Platform customers, which include ChatGPT creator OpenAI, Microsoft, Alphabet, and Meta Platforms, have raced to snap up the scarce supply of its chips to compete in the fast-emerging generative AI sector. Its H100 and A100 chips serve as a general, all-purpose AI processor for many big customers.

However, tech firms have started to develop their internal chips for specific needs. Doing so helps cut energy use and can potentially reduce the cost and time to design.

Nvidia is now trying to play a role in helping these firms develop custom AI chips that have gone to rival firms such as Broadcom and Marvell Technology, said the sources, who asked not to be named because they were not allowed to speak publicly.

Nvidia moving into this area has the potential to hit Broadcom and Marvell sales.