No other company benefits more from the GenAI boom than Nvidia. The graphics chip manufacturer has now unveiled a new version of its own language model. This could outstrip the competition and force them to develop their own AI chips.

Nvidia’s new AI language model is causing a stir in the industry, as reported by Handelsblatt. With this model, the US company could ascend from being the leading chip manufacturer to the top GenAI provider. “Google and Nvidia will soon be the key players in developing large AI models,” quotes Handelsblatt Marc Mengler, CEO of the AI startup Octomind. It’s not just surprising that Nvidia uploaded the new language model, codenamed “Llama-3.1.-Nemotron70-B-Instruct,” unannounced on the French AI platform HuggingFace.

Outperforming the Benchmarks

Even more striking is that Nemotron outperformed the benchmark models from AI developers OpenAI with ChatGPT and Anthropic with Claude in comparative tests. What sets Nemotron apart from the latter is its ability, like GPT-4.0, to process, analyze, and generate not just text but also images.

The boom sparked by OpenAI with ChatGPT at the end of 2022 had already propelled Nvidia into the elite group of trillion-dollar companies by market capitalization just half a year later in May 2023. Before that, there were only four: Amazon, Apple, Microsoft, and Alphabet, the parent company of Google. One year later, as reported by Digital Chiefs, the graphics chip manufacturer had risen to become the most valuable company with a market capitalization of 3.3 trillion dollars by the end of May 2024.

Three times as valuable as Germany’s top 10

For comparison: 3.3 trillion or 3,300 billion dollars is exactly five times the combined value of the German top 4 led by SAP and more than three times the value of Germany’s top 10, with BMW bringing up the rear. This is according to the figures published by Statista in September 2024. However, this comparison is already outdated, as Nvidia reached a market capitalization of 3.62 trillion dollars in November 2024. Nemotron could further boost this figure. Incidentally, Nemotron is not the first AI language model from the conglomerate. In mid-June, the chip giant had already announced its own model and in September made the source code freely available under the name “NVLM 1.0.” The predecessor was also trained not just on text but on images as well.