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At the end of August, the world’s attention was drawn to the earnings announcement of US semiconductor giant NVIDIA. Around the same time, there were new announcements regarding the domestic semiconductor industry in Japan. In this article, we will introduce these two topics.

1. NVIDIA’s Q2 Earnings Announcement

NVIDIA, a global leader in AI semiconductors, announced its earnings for the second quarter (April-June) on August 28th, reporting record-high revenue and net income.

Revenue surged 2.2 times year-on-year to $30.04 billion. In particular, the data center segment, which houses most of its AI products, generated $26.272 billion, accounting for 87% of the total.

The importance of data centers has increased significantly with the advent of generative AI. It is said that generative AI requires 10 times more power than a typical search to answer user queries. Additionally, data centers consume a vast amount of electricity by performing calculations on massive amounts of data using numerous servers in a short period.

NVIDIA plans to start mass production of its AI-dedicated GPU, “Blackwell,” later this year.

Although production delays have been reported, it is said that generative AI will become 30 times faster and 25 times more energy-efficient.

Once the shipment of Blackwell begins in earnest, interest in data centers is likely to further increase.

2. Expectations for Preferred Networks (PFN), Developing Domestic Semiconductors (for Generative AI)

SBI Holdings, a major internet financial company, announced a capital and business alliance with Preferred Networks (PFN), a startup that provides AI services.

The two companies will jointly develop AI semiconductors by incorporating PFN’s AI semiconductor design know-how.

Founded in 2014, PFN is a startup that vertically integrates the development and provision of hardware and software necessary for the practical application of AI technology. The company handles everything from the design of AI semiconductors and development of peripheral software to the development of supercomputers using its own AI semiconductors, construction of generative AI foundation models, and development of applications that utilize them. Since 2023, it has been providing computational platforms using its own AI semiconductors to external users.

Recently, the global demand for AI semiconductors has been rapidly increasing due to the advancement of generative AI technology, leading to a supply shortage. Furthermore, it is expected that power consumption from AI development and utilization will continue to increase, necessitating the development of high-performance and low-power consumption AI semiconductors.

Through this collaboration with PFN, the SBI Group expresses its enthusiasm in strongly supporting the domestic dissemination of next-generation AI semiconductors and promoting PFN’s business expansion, thereby contributing to the development of the semiconductor industry in Japan.

Additionally, by manufacturing PFN’s next-generation AI semiconductors, the SBI Group expects to increase its recognition in the manufacturing industry and create a semiconductor ecosystem in Miyagi Prefecture, where its planned business site is located, leading to high economic effects within the region. This, the company believes, will enable a significant increase in the added value of the SBI Group and establish a role model for industrial creation in local areas starting with the semiconductor industry.

We will continue to follow the developments of how the collaboration between the SBI Group and PFN will contribute to the revitalization of Japanese industries and the semiconductor industry.