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NVIDIA launches AI Foundry for custom generative models

EditorTanya Mishra
Published 07/23/2024, 11:47 AM
© Reuters.
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SANTA CLARA, Calif. - NVIDIA (NASDAQ: NVDA) has unveiled its NVIDIA AI Foundry service, along with NVIDIA NIM™ inference microservices, aimed at enhancing generative AI capabilities for global enterprises using the newly introduced Llama 3.1 model collection. The announcement, made today, highlights NVIDIA's efforts to empower businesses and nations to develop 'supermodels' tailored to their specific industry requirements.

The NVIDIA AI Foundry provides an end-to-end platform for the creation of these custom models, leveraging NVIDIA's software, infrastructure, and expertise in conjunction with open community models and technology. It is supported by the NVIDIA DGX™ Cloud AI platform, which offers scalable compute resources to meet the evolving demands of AI applications.

Accenture (NYSE:ACN) is the first global professional services company to adopt NVIDIA AI Foundry for developing custom Llama 3.1 models for its own use and for its clients. These models are designed to reflect the unique culture, languages, and industry-specific needs of their users.

The NVIDIA NIM inference microservices facilitate the deployment of Llama 3.1 models, promising up to 2.5 times higher throughput compared to running inference without NIM. Additionally, the NVIDIA NeMo Retriever NIM microservices provide advanced retrieval capabilities for AI assistants and digital avatars, enhancing response accuracy.

Industry leaders like Aramco (TADAWUL:2222), AT&T, and Uber (NYSE:UBER) are among the first to access the new Llama NVIDIA NIM microservices, which have been trained on over 16,000 NVIDIA H100 Tensor Core GPUs. These services are optimized for NVIDIA's accelerated computing and software platforms, including data centers, cloud environments, and local workstations with NVIDIA RTX™ GPUs or GeForce RTX GPUs.

NVIDIA's collaboration with Meta (NASDAQ:META) has also resulted in a distillation recipe for Llama 3.1, enabling developers to build smaller custom models suitable for a range of accelerated infrastructure.

Barclays has raised its 2024 forecast for the S&P 500 index to 5,600, driven by an anticipated sustained profit growth among major technology companies, including NVIDIA Corporation (NASDAQ:NVDA). The firm also increased its 2024 earnings per share forecast for these firms to $241.

Citi also maintained a positive outlook on NVIDIA, reiterating its Buy rating and $150.00 price target. The firm anticipates significant discussions on the future of AI and the return on investment for NVIDIA’s end customers at the upcoming SIGGRAPH 2024 conference.

In an attempt to navigate the complex landscape of international trade and technology competition, NVIDIA is reportedly developing a version of its latest artificial intelligence chip, the B20, specifically for the Chinese market, complying with current U.S. export controls.

NVIDIA has also taken a stand against illicit shipments of semiconductors to Russia via China and Hong Kong, stating that it ceased sales to Russia in 2022 and mandates compliance with U.S. laws from its customers. These developments underscore NVIDIA's ongoing efforts to navigate the complex landscape of international trade and technology competition.

InvestingPro Insights

NVIDIA Corporation (NASDAQ: NVDA) continues to push the envelope in the AI space with its latest offerings, and the financial metrics reflect a company with robust growth and a strong market position. According to InvestingPro data, NVIDIA boasts a staggering revenue growth rate of 208.27% over the last twelve months as of Q1 2025, showcasing its capacity to scale operations and meet the rising demand for AI technologies.

The company's gross profit margin stands at a healthy 75.29% during the same period, indicating its ability to maintain profitability despite the costs associated with developing cutting-edge technologies like the NVIDIA AI Foundry and Llama 3.1 model collection. Furthermore, NVIDIA's market capitalization of a massive $3040.0B USD underscores its dominant position in the industry.

InvestingPro Tips suggest that NVIDIA is a prominent player in the Semiconductors & Semiconductor Equipment industry and has maintained dividend payments for 13 consecutive years, which could be attractive to investors looking for stable returns alongside growth potential. Additionally, NVIDIA's stock has seen a high return over the last year, with a 178.9% price total return, reflecting investor confidence and the company's strong performance.

For readers interested in deeper financial analysis and additional InvestingPro Tips on NVIDIA, including sales growth projections and earnings multiples, visit https://www.investing.com/pro/NVDA. There are 20 additional tips available, offering a comprehensive look at NVIDIA's financial health. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to stay ahead with real-time data and expert insights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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