Graphics processing units, which process large amounts of data in parallel, have become the foundational hardware for AI systems that rely on hardware capable of processing millions of text parameters simultaneously.

The term GPU was first used by Sony in 1994 to refer to the geometry processing unit inside the PlayStation console, five years before Nvidia's marketing of the GeForce 256 revised the acronym to graphics processing unit.

Nvidia pioneered the GPU industry via its origins as a video game company

From the mid-1990s to early 2000s, Nvidia carved out a niche as a maker of semiconductor chips specially designed for the video game industry. Nvidia broke through the competition to seal deals with TSMC and Microsoft, and popularized the term "graphics processing unit," aka GPU.

CUDA, the computing platform that transformed graphics processing units from pixel renderers into general-purpose components powering AI, originated from a computer science student.

By 2024, Nvidia had become one of the world’s most valuable companies

Nvidia started as a graphics chip designer for PCs and consoles. This explainer traces its rise from early GPU innovation to powering AI breakthroughs and fueling the data centers behind today’s biggest tech platforms.

Take a virtual tour inside the NVIDIA GA102 graphics processing unit to explore the architecture that enables it to perform over 35 trillion calculations per second.

CUDA was Nvidia’s first step into artificial intelligence

CUDA (Compute Unified Device Architecture) is a parallel computing platform that was developed by Nvidia in the mid-2000s. By letting people perform computations in parallel, rather than sequentially, CUDA allowed people to compute large amounts of data quickly. CUDA has been used to build machine-learning models as well.

As of 2025, Nvidia controls over 90% of the discrete graphics processing unit market, with its high-end components serving as the backbone for the AI data center boom, followed by AMD and Intel.

Nvidia entered its AI era after learning that its chips could be used in industries beyond gaming

Its semiconductor chips were used in the automotive industry, for data centers, and by crypto miners. And starting in 2006, Nvidia took steps that would ultimately transform it into the AI company it's known as today. This podcast is the second part of a three-part series diving deep into Nvidia's company evolution.

Although GPU stands for graphics processing unit, the acronym is often used to refer to a graphics card—an assembly that houses the microchip along with supporting components.

Watch a tech demo of the world's first consumer graphics processing unit, the Nvidia GeForce 256, released Oct. 11, 1999.

With many smaller computing cores, graphics processing units process many identical tasks in parallel, whereas central processing units have fewer, larger cores built to handle a wide variety of more complex tasks sequentially.

Nvidia was founded in a Denny's restaurant

Nvidia is one of a handful of companies valued at more than $1T. In its early days, the semiconductor company sold GPUs, or graphics processing units, that were used for video games. But in recent years, Nvidia's chips have been used for crypto and AI. Nvidia has faced several setbacks on its journey, including when the US sanctioned chip exports to China.

Since 2025, AI data center growth has created shortages and price hikes in graphics processing units and their supporting hardware, including high-speed memory.

NVIDIA named several computer chip architectures after Grace Hopper

Unveiled in 2023, the GH200 Grace Hopper Superchip, designed for generative AI applications in data center-scale systems, combines a Grace CPU with a Hopper GPU to create a coherent memory model. This allows the Hopper to access Grace data directly, reducing the need to repeatedly copy data back and forth and vastly improving performance.

Nvidia's rapid development of GPUs is forcing computing to depart from something called Moore's law

Moore’s law, named after Intel’s cofounder, predicts that the number of transistors on a chip will double every two years. But Nvidia could be outpacing that prediction.

Nvidia's attempted Arm acquisition revealed its hopes of becoming the world's leading AI company

Though Nvidia's acquisition of Arm, another company that designs semiconductors, was ultimately quashed over antitrust concerns, the attempt offered insights into Nvidia's business strategy. Over time, Nvidia has increasingly focused on using its graphics cards to power machine learning, and its platform CUDA is dominant in the sector.

Today's massive data centers evolved from single-room mainframes

Punch card computers from the late 1940s were used to store and process a company's data locally before the advent of desktop computers. As the amount of data and company sizes increased alongside the miniaturization of technology, mainframes were replaced by local server rooms and external facilities with interconnected servers running cloud-based and AI software.

Explore graphics processing unit benchmarks for 2026, led in performance by Nvidia's GeForce RTX 5090, with AMD's Radeon RX 9060 XT 8GB and Nvidia's GeForce RTX 5060 providing the best 1080p performance per dollar.

Nvidia controls more than four-fifths of the GPU market—but isn't considered a monopoly

Semiconductor company Nvidia has a commanding market share when it comes to graphics processing units. Its competitors include Advanced Micro Devices and Intel, which together account for less than a fifth of the GPU market.

When buying a custom computer, selecting integrated graphics is more affordable, but a dedicated graphics card should be considered for CAD, video content creation, high-end gaming, and 3D modeling.

Nvidia CEO Jensen Huang’s keynotes have become a main event at CES

Watch Jensen Huang’s 2025 CES keynote, where he unveiled major advances in AI and GPU technology. His presentations now draw global attention, blending product reveals with sweeping visions of the future of computing.

Nvidia’s RTX graphics chips support ray tracing, which, the company says, can boost performance in games by 25%

Ray tracing allows developers to add more realistic-looking lighting and shadows to video games, and Nvidia continues to improve the tech in newer chips. Rendering light realistically in video games requires immense computing power, and ray tracing “cheats” the process with a little guesswork.

A timeline of computer history

The earliest computers bear little resemblance to the computing devices that most people rely on today. This timeline graphic from the Computer History Museum tracks their evolution, from the early days of bulky mainframes that only experts generally used through to the personal computing revolution and on to the modern mobile era. Readers will learn important context ahead of the next major computing platform shift.

Graphic processing units rely on a hierarchy of memory for optimization, where the smallest, fastest memory—registers—is located closest to the core and provides access to data in a fraction of a nanosecond.

Watch how graphics cards are fixed in a workshop by replacing faulty components, including graphics processing units and memory, located atop printed circuit boards.

Nvidia CEO Jensen Huang once saved Nvidia from bankruptcy with a multi-million dollar Hail Mary

Nvidia is now known as one of the top companies contributing to the AI boom, but back in the 1990s, it almost failed. One last-ditch effort conversation that CEO Jensen Huang had with an investor saved the company.

Some graphics processing units advertised under different product names, such as Nvidia's RTX 5070-Ti and RTX 5080, are identically manufactured microchips with different defect counts.

Over half of Nvidia’s revenue comes from outside the US

This chart breaks down where Nvidia’s revenue comes from—both in terms of which business segments it’s generated by and in which countries. Most of Nvidia’s revenue stems from its computing segment, which includes billions spent by companies building AI.

Rival companies AMD and Nvidia's CEOs are related

Advanced Micro Devices (AMD) and Nvidia are two of the world's largest manufacturers of processing chips and are fierce competitors. AMD's CEO Lisa Su and Nvidia CEO Jensen Huang are actually first cousins once removed, but reportedly don't share a close relationship and didn't even meet until later in life at an industry event.

View a timeline of AI deployments from 2017 to 2025

The development of transformer architecture and the release of GPTs across AI labs led to rapid changes in LLM scale and power. Companies like OpenAI, Google, Meta, Microsoft, and Anthropic have invested billions of dollars to develop reliable, versatile models.

A brief history of artificial intelligence

The concept of artificial intelligence and what it may mean for humanity has evolved as computer technologies have grown increasingly powerful through the decades. Beginning with the first (massive) computers in the 1940s, scientists have sought to make the machines as intelligent as humans. But it wasn't until computing power made exponential gains have computers begun to imitate human behavior.

Google invented the foundation of the AI movement—but ChatGPT was a shock

For years, Google was the cutting-edge of the AI world, including the development of the Transformer—the basis of contemporary AI chatbots. But since OpenAI debuted ChatGPT in 2022, the company was had to play catch-up. This is a four-hour deep dive into Google's AI history.

NASA purchased about 60% of all integrated circuits from 1961 to 1965

The US government adopted the new technology to support the development of the Apollo Guidance Computer, which would help astronauts fly to the moon. This drove manufacturing up and costs down, setting the stage for the modern computing era.

The basis for AI image and video generation was first introduced in 2014

Through generative adversarial networks, the generator (a neural network that creates fictional data) competes against the discriminator (a neural network that assesses the data) to continuously train the former until it can make content indistinguishable from the real thing. Training with unstructured data can enable software to identify characteristics of gender, age, and expression.

Grace Hopper warned against prioritizing hardware purchases in future computing

Foreseeing the rising volume of data and the increasing demand for its processing and access, she advocated that organizations first map the total flow of information they require and then choose infrastructure to support it, rather than wastefully spending on the fastest computing technology and forcing software to compensate for unnecessary hardware or incorrect data.

Pixar's RenderMan software, which turned code into graphics, changed the way Hollywood produced special effects.