Pat Gelsinger Backs $100M Startup Challenging Nvidia’s AI Networking Advantage
Former Intel CEO Pat Gelsinger is supporting Delos Data, a startup that has raised over $100 million to develop networking chips and software for heterogeneous AI data centers. The company aims to create an open network system compatible with various compute hardware rather than relying solely on NVIDIA’s (NASDAQ:NVDA) accelerators. This development could benefit Advanced Micro Devices, Inc. (NASDAQ:AMD), as it challenges the integrated ecosystem that currently favors Nvidia in large-scale deployments. Nvidia's dominance in AI is partly due to its tightly integrated system of accelerators and networking solutions. Delos argues this model may become less effective as inference workloads grow more diverse. By enabling mixed-architecture data centers, Delos could reduce barriers for companies using AMD or other hardware alongside Nvidia products. However, the startup faces significant challenges in competing with an incumbent that has substantial scale, mature software, and proven performance. Hedge funds have increased their exposure to both NVIDIA and AMD recently, indicating growing interest in AI infrastructure stocks despite ongoing competition.
Topics: Artificial Intelligence Networking Technology Semiconductor Industry