Thanks for that GPU purchase, we’ll start a tab for you
Nvidia is repositioning itself as a software and services company, allowing it to regularly extract revenue from those using its graphics processors. „Now we’re entering into a new phase, a new phase that we are thinking about software, and a business model for software to sell separately,“ Colette Kress, chief financial officer of Nvidia, told the Morgan Stanley Technology, Media and Telecom conference this week. Things haven’t been easy on the hardware side of Nvidia, with semiconductor supply shortages, unhappy gamers, and the failed Arm acquisition. Well, never mind that, the software side will offer a more predictable revenue stream, Kress said. The CFO gave the example of how autonomous cars will drive a recurring software revenue. Mercedes-Benz, starting in 2024, and Jaguar Land Rover, starting in 2025, will ship self-driving vehicle with Nvidia’s computers and DRIVE operating system. „Their entire fleets will be operated with Nvidia software, and we will have the ability to share that software with those OEMs and monetize it over the life of the cars being on the road,“ Kress said, adding that she expected the number of such cars to reach about 10 million. Nvidia is working with Mercedes-Benz and Jaguar Land Rover to customize software for their vehicles. The GPU giant has been preaching the car-as-a-service model, in which automakers can remotely turn on car features, such as driver assistance, through subscription services.
