Nvidia wins CPU business from Modal, previously exclusive to AMD and Intel
Nvidia Corp has won CPU business from AI cloud startup Modal, which previously used only Intel and AMD processors. Modal will use Nvidia's Vera chip for AI agents, reporting a doubling in work capacity. Modal raised $750M at a $15.75B valuation, expecting $1B in sales next year. Nvidia projects $20B in Vera chip revenue this fiscal year.
How this was made
The 30-second read
Why it matters
The deal validates Nvidia's CPU ambitions and could add a new revenue stream, but the overall market impact depends on adoption by other AI workloads.
Market read
Nvidia's entry into the CPU market may shift competitive dynamics and support its growth narrative in AI hardware.
What to watch
Modal will continue using Intel and AMD alongside Nvidia, so the revenue impact may be incremental rather than transformative.
Background
Nvidia announced its Vera central processor will be used by Modal, an AI cloud‑computing startup that previously relied exclusively on Intel and AMD.
Ticker impact
Nvidia secured a central processor chip deal with Modal, marking its entry into a market previously served only by Intel and AMD.
likely upward pressure as investors price in new revenue stream from Vera chip sales
Nvidia projects at least $20 billion from Vera chip sales this fiscal year; a new customer validates the product and may accelerate adoption.
Market effects
Could spur competitive pressure on Intel and AMD in the CPU market and encourage other AI startups to consider Nvidia chips.
Primarily U.S. tech sector, with potential ripple effects in AI cloud services.
Highlights Nvidia's push into broader processor markets, relevant for global AI hardware investors.
Counterpoint
The partnership may be limited in scale; Nvidia still faces strong competition and integration challenges.
Key entities
- companyNvidia Corp
US‑listed semiconductor company expanding into CPUs.
- companyModal
AI cloud‑computing startup adopting Nvidia's Vera chip.
