But Nvidia was already preparing to adapt and stay at the forefront of the AI race despite the shift away from creating models and toward operating them, a process known in the in

Sales of the firm's chips hit more than $39bn (£30.7bn) over the three months ended 27 January, up 74% year-on-year. Nvidia has seen a surge of demand, as big tech companies turn to the firm for chips that can handle the large amounts of data used to train AI models.

Nvidia's forecast also helps allay doubts around a slowdown in spending on its hardware that emerged last month. The company reported quarterly results on Wednesday.

Nvidia continues to solidify its dominance in the artificial intelligence sector, with its latest earnings report showing a 93% surge in data center revenue. The company’s transition to its new Blackwell architecture signals a strategic shift from individual chip sales to fully integrated AI computing systems,

Nvidia’s latest generation Blackwell GPU sales are off to a good start. “Demand for Blackwell is amazing as reasoning AI adds another scaling law — increasing compute for training makes models smarter and increasing compute for long thinking makes the answer smarter,

NVIDIA announced another record-breaking quarter on Wednesday. Revenue surged to $39.3 billion, a 12% increase from the previous quarter and a 78% rise from the previous year.