Nvidia wins fast-growing AI startup Modal for new central processors
Nvidia secures a deal with AI startup Modal to use its new Vera central processor, marking a shift from Modal's previous reliance on Intel and AMD chips. Modal, valued at $15.75 billion, reported tripling usage and 15x revenue growth. Nvidia claims its chip doubles AI agent productivity, but Modal will continue using Intel and AMD chips. Nvidia targets $20 billion in Vera chip sales this fiscal year.
How this was made
The 30-second read
Why it matters
The announcement provides the first concrete evidence of Vera chip adoption, potentially expanding Nvidia's addressable market and supporting its revenue guidance for the fiscal year.
Market read
The deal underscores Nvidia's strategy to capture central processor market share from Intel and AMD, offering a new growth catalyst for the stock.
What to watch
Modal will continue using Intel and AMD chips, limiting the immediate revenue impact of the Vera adoption.
Background
Nvidia announced its Vera central processor, targeting AI workloads traditionally served by Intel and AMD. Modal, a fast‑growing AI cloud startup, plans to run Vera chips alongside existing hardware.
Ticker impact
Nvidia secured a deal with AI startup Modal to supply its new Vera central processor, marking the first reported customer adoption of the chip.
likely upward pressure as investors price in new chip sales and market share gains.
First disclosed customer for Vera, a high‑growth AI processor, suggests incremental revenue and validates Nvidia's push into the central processor market.
Market effects
May accelerate adoption of Nvidia's AI silicon across the broader AI hardware sector.
U.S. AI and semiconductor markets could see modest uplift.
Highlights Nvidia's growing influence in the global AI compute ecosystem.
Counterpoint
The deal size is unclear; Modal remains a small customer and may not materially affect Nvidia's top line.
Key entities
- CompanyNvidia
US‑listed semiconductor company (NVDA) developing AI processors.
- CompanyModal
Private AI cloud‑computing startup adopting Nvidia's Vera chip.
