Chipmaker Nvidia is executing a full-stack gen AI strategy to expand its services to the financial services industry, evidenced through its product launches and acquisitions. 

The financial services “market appears to be moving toward what we call ‘full stack, AI dominance,’” Adya Pandey, intelligence analyst at data company CBInsights, said during a recent webinar. Full stack offering refers to when a company provides the hardware and software to customers for better performance.

“The traditional boundaries between hardware, software and services are blurring, so companies that can control both the infrastructure and the application layer might have a significant advantage in terms of optimization and performance,” Pandey said. 

To meet the growing demand for AI solutions, Nvidia is acquiring software companies using AI in order to innovate faster and provide vertical integration of all its AI-related services, “trying to build out a comprehensive enterprise gen AI stack,” Pandey said.  

The following FIs use Nvidia’s AI services: 

• American Express uses Nvidia’s AI-driven fraud fighting solution and has reduced false positives by 6%; 

• BNY has developed an AI factory with Nvidia to improve operational efficiency; and 

• Fintech WealthSimple uses Nvidia’s AI solutions for faster trading algorithms and to reduce time to market for its products. 

Santa Clara, Calif.-based Nvidia is the biggest chip manufacturer in the world. Acquiring gen AI-related software companies adds bandwidth to provide both hardware and software services to its customers, Pandey said. 

The company is also developing AI-driven software to run on its chips to become a “one-stop shop” for all AI and gen AI services, Malcolm deMayo, global vice president of financial services at the chip-maker, told Bank Automation News. 

The $30 billion BNY had the chipmaker create an AI factory to help the bank improve its operational efficiency, deMayo said. The factory runs on Nvidia software and has open architecture, meaning it is highly customizable and can use any AI model like OpenAI or Google Gemini for workflows, he said. 

Earlier this year, Nvidia launched Nvidia NIMs. The AI-driven microservice allows companies to tap the chipmaker for specific AI solutions and workflows, deMayo said. 

To further expand its AI-related software offering to financial services companies, Nvidia has acquired five companies so far this year: 

• AI workflow generator Octo AI, for an undisclosed amount on Sept. 25; 

• AI compute provider Brev, for an undisclosed amount on July 17; 

• AI-driven software developer Shorline, for an undisclosed amount on June 19;  

• AI-solutions generator Deci AI, for $300 million on May 2; and 

• GPU compute provider for AI applications Run AI, for $700 million on April 24. 

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