Nvidia, Snowflake announce partnership for custom generative AI models

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Nvidia (NVDA) and Snowflake (SNOW) have announced a new partnership that will allow the cloud services company’s more than 8,000 customers to build their own generative AI assistants.

The news was announced during a fireside chat between Nvidia CEO Jensen Huang and Snowflake CEO Frank Slootman at the Snowflake Summit on Monday.

The move will allow Snowflake’s users to build custom AI models using their internal data. That’s a big deal for businesses that want to take advantage of large language models and generative AI, and need to get specific, company-centric answers to their own queries.

FILE - Nvidia Co-founder, President and CEO Jensen Huang speaks at the Taiwan Semiconductor Manufacturing Company facility under construction in Phoenix, Dec. 6, 2022. AI chips and their leading designer, Nvidia, are now at the center of what some experts consider an AI revolution that could reshape the technology sector — and possibly the world along with it. (AP Photo/Ross D. Franklin, File)

Nvidia Co-founder, President and CEO Jensen Huang. (AP Photo/Ross D. Franklin, File)

That means Snowflake’s customers will, among other things, be able to build their own generative AI chatbots to pull information from their vast information databases.

Nvidia provides the underlying toolkit, called NeMO, which provides a foundational large language model that Snowflake customers then customize using their own data. Nvidia will also provide the infrastructure, including graphics processing units that customers will need to train their generative AI models.

In May, the graphics chipmaker announced a somewhat similar partnership with ServiceNow (NOW). Rather than allowing customers to train their own generative AI models, however, ServiceNow trains the models itself. The idea is to give customers a quick means of taking advantage of generative AI capabilities without necessarily having to train the platforms on their own data.

This isn’t the first type of program to allow companies to build out their own generative AI apps.

In May, Microsoft (MSFT) announced the launch of its Azure AI Studio, which allows Microsoft customers to create custom AI-powered apps called copilots. Copilots, like Snowflake’s offering, can take a number of forms including running as chatbots.

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Generative AI exploded onto the scene when OpenAI released ChatGPT in Nov. 2022. Since then companies ranging from Microsoft to Google (GOOG, GOOGL) to Meta (META) and Amazon (AMZN) have released products or discussed working on the technology.

But Nvidia, which has been investing in developing both chips designed to run AI systems and the software that powers them, has easily been one of the biggest beneficiaries of the boom.

The company’s shares are up 159% over the last 12 months, and 189% year-to-date. The reason? Nvidia is the go-to company when it comes to AI chips. That’s because it turns out, graphics chips are exceptionally good at performing the kind of parallel processing required for AI.

Sure, AMD has its own graphics capabilities, and Intel is building out its AI offerings, but Nvidia is at the top of the heap. And for the foreseeable future, it’s going to stay there.

Daniel Howley is the tech editor at Yahoo Finance. He’s been covering the tech industry since 2011. You can follow him on Twitter @DanielHowley.

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