Nvidia Dominates Data Center GPU Market with 98% Share in 2023

Over the past year, with the explosive growth of the artificial intelligence (AI) market, NVIDIA’s data center revenue has surged dramatically. It has grown from being on par with its gaming business to outshining it by an eightfold margin within just two years, an astounding rate of growth.

According to HPCWire, NVIDIA entered a super cycle in 2023, thanks to the substantial profits brought by its Hopper architecture products. Although other major tech companies are competing in the AI race, they lag significantly behind NVIDIA in terms of shipment volumes, due to its comprehensive hardware and software ecosystem.

TechInsights reports that in 2023, NVIDIA successfully shipped approximately 3.76 million data center GPUs, about 1 million more than in 2022, capturing a staggering 98% market share and completely outpacing competitors like AMD and Intel. The total data center GPU shipments in 2023 were around 3.85 million, making it virtually impossible for competitors to gain a foothold. With higher product prices, NVIDIA generated $36.2 billion in revenue from data center GPUs in 2023, more than triple that of 2022.

However, as the AI market continues to evolve, diversification is inevitable. Numerous alternatives will emerge, including products from competitors and custom solutions from large data centers and cloud service providers. Currently, there isn’t enough AI hardware to meet the demand, most of which is for NVIDIA’s products, making it challenging for competitors to gain traction.

With the arrival of products based on the Blackwell architecture, one can only imagine the market allure they will hold. Although AMD and Intel have introduced alternative products, challenging NVIDIA will require significantly more effort.