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NVIDIA defends its dominance in the area of ​​artificial intelligence with the software trench. Many companies have built artificial intelligence software chimneys based on NVIDIA Cuda to harness the power of graphics processing units, and because the NVIDIA program only works with their graphics processing units, they cannot switch to competitors ’graphics processing units.

This strategy has succeeded well for the company; However, things are changing, Broadcom took a slice of AI pie in NVIDIA.

Broadcom in the class of artificial intelligence market can only surprise people who do not know that it already has a long -term partnership with Google, which has been born with mortar processing units (specialized chips for artificial intelligence work).

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The company also works with Meta and Bytedance platforms on custom chips. During the profit call, Broadcom announced a partnership with another company of artificial intelligence.

On September 4, Broadcom ((AVGO)) I mentioned Its results for Q3 from the fiscal year 2025.

Hock Tan, President and CEO of Broadcom, expects that semiconductor revenues from artificial intelligence will grow to $ 6.2 billion in the next quarter.

• Revenue of $ 15.95 billion for the third quarter, an increase of 22 % year on an annual basis.

• Net income of $ 4.14 billion for the third quarter.

• Justice adjustment before interest, taxes, depreciation and consumption of $ 10.7 billion for the third quarter, or 67 % of revenues.

• Lowering profits per share from $ 0.85 to the third quarter;

• Regular quarterly stock profits from $ 0.59 per share.

• Revenue guidelines are about $ 17.4 billion, an increase of 24 % on an annual basis.

• 67 % modified EBITDA directions of expected revenue.

During the profit call, Tan said that the company has concluded a deal with a new agent to build their Amnesty International accelerators, and the customer’s commitment to more than 10 billion dollars as orders of artificial intelligence shelves based on the company XPUS.

Broadcom did not reveal who is the new customer, but the Financial Times Etisalat certain Openai is the new customer.

With Openai joining Google, Meta and Bytedance in search of cheaper AI chips, it is clear that most companies will turn from NVIDIA to something else if not for Cuda. However, since they invest in these chips, they must also slowly make changes on their software chimneys.

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Another piece of technology that helps NVIDIA to control the market is NVLINK. It helps to connect multiple graphics processing units and communicate at very high speeds. Many companies have cooperated to work on an alternative called Ultra Accessor Link, including Google, AMD, Intel, Meta, Apple, Hewlett Packard Enterprise, Microsoft, Broadcom and many others.