Despite OpenAI's Potential Shift, Citi Analyst Predicts Nvidia's Continued Dominance in AI GPU Market

Last night, Reuters reported that OpenAI has been exploring the options of building its own AI accelerator and diversifying its suppliers beyond Nvidia Corp NVDA. 

The report flags that the company has yet to decide which path to take. 

If true, Citi analyst Atif Malik views these measures as unsurprising as he maintained that GPUs and ASICs would require the ramp of the necessary infrastructure for AL and ML. 

As further detailed in this note, he foresees ASICs primarily being used for smaller and more specialized models and GPUs for training and inference of larger and more complex models. 

Similarly, he expects NVDA to maintain a ~90% share in the AI GPU market for the next 2-3 years. 

Pivoting to Marvell Technology, Inc MRVL, another prominent AI player such as OpenAI, looking to build its own AI accelerator, may offer a viable path.

Price Action: NVDA shares traded lower by 2.09% at $448.10 on the last check Monday.