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Nvidia CEO: Industrial Data Center Sales Grew Faster Than Hyperscale

Jensen Huang says AI is having its ‘smartphone moment’ for every industry. ‘All of these industries, whether you’re in medical imaging or in lawn mowers, you’re going to have data centers that are hosting your products, just like the [cloud service providers],’ he says of Nvidia’s new milestone in the company’s latest earnings.

February 24, 2021 2 minute read

by Dylan Martin

Nvidia’s data center GPU sales through OEMs to vertical industries grew faster than revenue from hyperscalers for the first time in the company’s history, according to Nvidia CEO Jensen Huang.

The Santa Clara, Calif.-based company achieved the milestone in the fourth quarter of its 2021 fiscal year, where the company reported record revenues for the quarter and the year, though overall data center sales were flat from the previous quarter as a result of declining Mellanox networking revenue. The shift in sales means that organizations in verticals ranging from financial services and higher education had higher compute needs than some of the world’s largest consumers of data center infrastructure, which include tech giants like Facebook, Microsoft, Amazon and Google, at least for Nvidia’s latest quarter.

Tim Brooks, managing director at St. Louis, Mo.-based World Wide Technology, a top Nvidia partner and No. 9 on CRN’s 2020 Solution Provider 500 list, recently told CRN that his company’s Nvidia business grew 400 percent over the past three years and is now in the nine digits.

“It’s significant enough where we’ve invested hundreds of people within World Wide — engineers, architects, data scientists and AI solution developers that are all now working for us,” he said. “Whereas in 2016, when we started, there was basically two of us carrying most of the water.”

What drives a lot of WWT’s customers to adopt Nvidia-based GPU servers is a desire for them to transform their business and put data at the forefront of everything they do, according to Brooks.

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