Nvidia wins CPU business from Modal, previously exclusive to AMD and Intel

Investing.com -- Nvidia Corp has secured central processor chip business from Modal, an AI cloud-computing startup that previously used only Intel and AMD processors, marking progress in Nvidia's effort to enter a market dominated by those two companies.

Modal said Monday it will begin using Nvidia's new Vera central processor to host AI agents, which are systems designed to complete extended tasks for users. The startup has operated such workloads exclusively on Intel and AMD chips until now.

The San Francisco-based company raised $750 million last week in a funding round led by Accel at a $15.75 billion valuation. Modal said it expects to reach $1 billion in sales over the next year. The company reported that usage of its services tripled and revenue grew more than 15 times year-over-year.

Modal said early testing showed Nvidia's new chip doubled the work capacity for AI agents, leading the company to adopt Nvidia's chip design for the first time. The integration will require substantial software modifications on Modal's platform.

Chief Executive Erik Bernhardsson said the company will maintain its relationships with existing suppliers. Modal plans to operate Nvidia chips alongside its current Intel and AMD processors, assigning each task to the hardware that performs it most efficiently.

Bernhardsson noted the tests compared Nvidia's chip against Intel and AMD processors currently available in the market. Both companies are developing newer models that may reduce Nvidia's performance advantage. He said Modal will evaluate those chips when they become available.

Nvidia has projected at least $20 billion in revenue from Vera chip sales this fiscal year as it targets a market it estimates at approximately $200 billion. The company previously announced that OpenAI, Anthropic, Oracle, and Perplexity also plan to use the chips.

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