Nvidia Corporation (NVDA) is reportedly eying a new market to expand into: one with the potential to explode like the AI field led by ChatGPT. Indeed, the leading chip-maker is looking to make the next big splash in technology to continue being leaders in that realm. One market that has been capturing more attention recently is the robotics market, where big players like Tesla already are. If Nvidia moves to enter this market, a surge in it could send NVDA stock soaring.
Nvidia is now a $3 trillion company, one of the biggest in the world. Its stock soared to Mag-7 status in 2024, thanks to its computer chip technology, which is pivotal to AI technology. Now, the company is looking at the next big business venture that could bring its value to potentially $4 trillion. A report by The Financial Times reveals Nvidia’s plans to achieve this future. It highlights how Deepu Talla, Nvidia’s VP of robotics, believes the robotics market has reached an inflection point where physical AI and robotics are about to take off in a big way.
“The ChatGPT moment for physical AI and robotics is just around the corner,” Talla told the publication, adding that he believes the market has reached a “tipping point.” Robotics is already a popular field, however, big-name tech giants are also looking to jump in, not just Nvidia. As mentioned previously, Tesla is working on an autonomous robot, looking to release it to consumers soon.
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Tesla Already Moves Into Robotics Market, Is Nvidia Next?
Elon Musk’s Tesla Optimus robot is the latest push by TSLA into autonomous, AI-powered labor/assistance. Optimus is a humanoid robot built by Tesla and designed to interact with its surroundings using two arms, hands, and legs. Displaying the AI robots at a recent event, Elon Musk said about the Tesla bots “I think this will be the biggest product ever of any kind.” He also predicts the prices of goods like the Optimus robot will drop over time, resulting in an “age of abundance.”
Nvidia hopes to leapfrog Tesla in the Robotics market with its current offerings of technology. The company already offers a full robotics stack that includes the software for training foundational AI models on DGX systems, its Omniverse simulation platform, and the Jetson hardware. Additionally, Nvidia plans to launch its latest robot brain called Jetson Thor next year. This will be the newest addition to the company’s Jetson platform: a line of compact computers designed for AI applications. Jetson Thor will be a model focused specifically on robotics, though.
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Furthermore, Deepu Talla believes that there are currently two key breakthroughs driving Nvidia’s robotics optimism. First is the rise of powerful generative AI models. The second is the ability to train robots in these foundational models using simulated environments. While the chip industry is getting more competitive thanks to companies like AMD, Nvidia hopes that robotics could be another big play that helps the company in the long run.
