NVIDIA chief Jen-Hsun Huang, speaking at the Reuters Global Technology Summit in San Francisco earlier this week, has revealed that NVIDIA intends to license its Kepler graphics core technology to other chip and device manufacturers. This strategic move marks a significant shift in NVIDIA’s business model, aiming to capitalize on the burgeoning mobile market in a post-PC era.
The new licensing scheme will enable NVIDIA to make the most of the mobile market, ensuring that its cutting-edge graphics technology is integrated into the latest tablets and smartphones produced by a variety of manufacturers. This approach not only broadens NVIDIA’s market reach but also positions it as a pivotal player in the mobile technology landscape.
Potential Collaborations with Industry Giants
The licensing of their technology may also provide NVIDIA with the opportunity to collaborate with mobile device giants such as Samsung and Apple in the near future. By leveraging NVIDIA’s advanced graphics technology, these companies can enhance the visual performance of their devices, offering users a superior experience. This potential collaboration could lead to groundbreaking advancements in mobile graphics, benefiting both NVIDIA and its partners.
NVIDIA’s Jen-Hsun Huang elaborated on this strategic shift, stating:
“The bottom line is the world has changed and we’re expanding our business model to serve markets that we historically could not serve by selling chips alone. We will target customers where their capacity and desire to build their own application processors is great.
This is a way for us to engage customers who don’t like to buy chips because they like to create their own, because they have the capacity, creativity and now the scale to build their own.”
Implications for the Mobile Market
This move by NVIDIA is particularly significant in the context of the evolving mobile market. As smartphones and tablets continue to dominate consumer electronics, the demand for high-performance graphics has never been greater. By licensing its Kepler graphics core technology, NVIDIA can ensure that its innovations are at the forefront of this trend, driving the next generation of mobile devices.
Moreover, this licensing strategy allows NVIDIA to tap into new revenue streams. Instead of relying solely on chip sales, the company can now generate income through licensing agreements. This diversification of revenue sources is a prudent move, especially in an industry characterized by rapid technological advancements and intense competition.
For example, consider the gaming industry, which has seen a significant shift towards mobile platforms. High-quality graphics are essential for an immersive gaming experience, and NVIDIA’s technology can provide the necessary performance boost. By licensing its technology, NVIDIA can play a crucial role in the development of mobile games, ensuring that they meet the high standards expected by gamers.
Additionally, the rise of augmented reality (AR) and virtual reality (VR) applications on mobile devices presents another lucrative opportunity for NVIDIA. These technologies require powerful graphics processing capabilities, and NVIDIA’s Kepler graphics core technology is well-suited to meet these demands. By partnering with manufacturers, NVIDIA can help bring more advanced AR and VR experiences to mobile users.
In conclusion, NVIDIA’s decision to license its Kepler graphics core technology represents a strategic evolution in its business model. By doing so, the company can expand its influence in the mobile market, collaborate with industry giants, and tap into new revenue streams. This move not only positions NVIDIA as a leader in mobile graphics technology but also sets the stage for exciting advancements in mobile devices and applications.
Source: ZDNet
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