Chip making giant Nvidia is using AI software to make AI hardware to keep up with demand for custom chips as industry adoption of AI grows, including the implementation of AI among financial institutions.
As the financial services industry’s adoption of AI increases, the demand for custom chips will also increase, Malcolm deMayo, global vice president of financial services at the chipmaker, told Bank Automation News, adding that AI chip designers can aid in the transition.
AI can help designers make custom chips and run simulations quickly, cheaply and at scale for financial services and other industries, he said.
“If you think about it … there’s so much data and there’s so much work that goes into designing chips that you need AI at this point to process all of that,” deMayo said.
THE BIG PICTURE: The Santa Clara, Calif.-based Nvidia reported Nov. 20 record quarterly data center revenues of $30.8 billion for the third quarter, up 112% year over year on the heels of rising AI adoption among all industries.
Major cloud providers including Google Cloud, Microsoft Azure and Amazon Web Services also reported higher cloud and data center revenues on the back of rising AI adoption.
“The age of AI is in full steam,” Chief Executive Jensen Huang said during the company’s earnings call on Nov. 20. “Industry leaders are using Nvidia AI to build co-pilots and agents.”
Financial institutions including American Express and $40 billion BNY are using Nvidia’s AI technology to boost operational efficiency.
BY THE NUMBERS: In Q3, Nvidia reported:
- Record quarterly revenue of $35.1 billion, up 94% YoY;
- Net income of $19.3 billion, up 109% YoY; and
- R&D expense of $3.4 billion, up 47.8% YoY.
OF NOTE: Nvidia teamed up with fintech GFT this month to use its Nvidia Enterprise AI tool to develop banking chatbots for GFT’s bank clients, according to a Nov. 12 GFT release.
“These tools, such as the Nvidia AI Enterprise software platform, provide the technical framework for these agents, while GFT provides the technical expertise to design and deploy them based on our clients’ individual business needs,” Marco Santos, co-chief executive at GFT, told BAN.
With heavily manual tasks such as software development, GFT’s banking clients have seen time savings of as much as 90% by automating the tasks with AI agents, he said.
All of the agents developed by GFT and Nvidia will use generative AI, among other AI technologies and open-source models including Nvidia Nemotron, Google Gemma, Llama 3.1 and Microsoft Phi, Santos added.
Other GFT customers include $1.5 trillion Deutsche Bank, VP Bank and $1.9 trillion Credit Agricole Italia are some of GFT’s customers.
MARKET REACTION: Shares of Nvidia (NVDA) increased 0.53% to $146 per share at market close. Nvidia has a market capitalization of $3.6 trillion.
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