Samsung bags a massive $752 million AI chip order from Naver

Samsung has dominated the AI chip market, securing an order valued at $752M for its Mach-1 AI accelerator chip production. This move shows how ambitious the Korean tech giant is to disrupt NVIDIA’s stronghold on the AI accelerator segment and be a key player in the industry.

Samsung steals $752M order from NVIDIA, producing AI accelerator chips for Naver

Mach-1 is an in-house AI accelerator chip that Samsung has released. It has attracted attention with its superior performance compared to those of NVIDIA. Naver Corp has contracted to buy about $752 million worth of Mach-1 chips from Samsung. In partnering with Samsung, Naver seeks a way to relieve itself of NVIDIA’s dependency as the demand for alternatives continues growing in the semiconductors market.

This decision reflects a wider trend within the industry towards dual sourcing as companies look to avoid risks associated with dependence on only one supplier. Competitive pricing and innovative technology have made Samsung an attractive option compared to NVIDIA for AI accelerator solutions.

According to DigiTimes Asia, the negotiations might finalize with Mach-1 priced at around $3,756 per unit while Naver plans on purchasing between 150,000 and 200,000 units. This partnership will not only solidify Samsung’s presence in the AI-chip market but also open up opportunities for collaborations with other tech giants.

Samsung might also partner with major players in the USA

Samsung is considering expansion into America by talking with major players like Microsoft and Meta. By leveraging the momentum gained from the Mach-1 deal, Samsung intends to secure more partnerships with leading tech organizations, cementing its position as a prominent participant within the AI accelerator space.

NVIDIA’s AI accelerator card suffers from data bottlenecks due to general-purpose processors and high-power DRAM chips. Meanwhile, Mach-1 comes with proprietary processors and low-powered DRAM chips that result in fewer data bottlenecks thus improving power efficiency. Moreover, this chip is much cheaper than NVIDIA’s solution, which makes it attractive for those companies looking for cost-effective AI.

Samsung is seeing more success within the AI chip market and therefore stiff competition between players in this space seems imminent. With its inventive know-how, advanced technology, and strategic partnerships, Samsung can challenge NVIDIA’s supremacy in the segment and reshape the AI accelerator industry.