Nvidia Joins Forces with Japan's Tech Institute for Hybrid Supercomputer Project

Nvidia Corp NVDA reportedly joins forces with Japan’s National Institute of Advanced Industrial Science and Technology to construct a hybrid supercomputer incorporating quantum computing capabilities for researchers and businesses.

This collaboration is part of Japan’s broader quantum computing initiative, where the ABCI-Q, a quantum-AI hybrid cloud system, is under development. 

Nvidia contributes graphics processing units to ABCI-Q and supplies quantum computing software through a cloud service, Nikkei Asia reports.

The system, which is scheduled to be available for a subscription fee starting in fiscal 2025, is expected to support various applications, from drug discovery to logistics optimization. 

Quantum computers have the potential to tackle challenges beyond the scope of traditional computers but are sensitive to minor environmental changes, leading to frequent errors. Integrating these with a supercomputer addresses these issues, facilitating complex computational tasks.

Researchers and businesses will be able to submit problems to this cloud-based system and receive solutions, aiming to propel the development of quantum computing technology by making it accessible to the private sector.

For instance, the system could aid a logistics company in finding the most efficient route for shipping, optimizing for both the shortest path and minimal CO2 emissions, even when the vehicle has to make several stops with full cargo.

Prior reports indicated Nvidia fostering an AI technology ecosystem in collaboration with Japanese research bodies, corporations, and startups. Nvidia’s CEO, Jensen Huang, has declared initiatives to launch an AI research facility in Japan, fund startups, and further AI educational programs.

In a meeting with Japanese Prime Minister Fumio Kishida, Huang committed to giving Japan preferential support. Nvidia’s strategy includes establishing ‘AI factories’ to analyze societal data and generate AI solutions across various sectors.

Amid an artificial intelligence surge, Japan is attracting technology companies aiming to reduce their dependence on China. Microsoft Corp MSFT has revealed plans to invest $2.9 billion in enhancing cloud and AI capabilities in Japan over the coming two years. Taiwan Semiconductor Manufacturing Co’s TSM CEO C.C. Wei, during a visit by Prime Minister Kishida to the Kumamoto facility, announced the company’s goal to procure 60% of materials for its first Japanese chip manufacturing plant from local sources by 2030.

The Japanese government is supporting TSMC’s project with substantial investments. TSMC is set to begin producing logic chips at the Kumamoto site by year’s end. In addition, Amazon.Com Inc AMZN Amazon Web Services is investing $15.5 billion in Japan from 2023 to 2027 to expand its data center footprint and strengthen local operations.

Price Action: NVDA shares closed lower by 10% at $762.00 on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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