Video Gaming Chip With AI From Nvidia Enhances Mid-Range Performance

As NVDA.O revealed on Wednesday, it will implement a range of artificial intelligence enhancements in one of its mid-range chips for gamers in order to improve the graphics quality. This underscores the importance of gaming for Nvidia despite the company's decline in revenue from this segment in recent years.

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Nvidia will start shipping its new RTX 4070 graphics processing unit (GPU) on Thursday for $599, making it one of the more affordable graphics processing units (GPUs) in the company's range, which currently start at $1,600 and increase to as high as $2,000 once they are scheduled to ship.

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In a survey conducted by Steam, in March, the online game distribution platform reported that the RTX 3060, which it is updating, is the fourth most popular gaming chip on the market, according to surveys conducted by the company in March.

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A significant part of Nvidia's revenue growth has been driven by its data center chips, such as ChatGPT, which are used to train artificial intelligence systems. Although the gaming chips contributed roughly one-third to the company's $26.9 billion in revenue in fiscal 2023, those revenues were sagging by 27% due to a declining overall PC market, dragged down by the company's gaming chips.

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With the new 4070 chips from Nvidia, PC video games can be rendered more quickly and the result is an overall better game experience. These are the cheapest of the Nvidia chips with the newest artificial intelligence technology to help games look realistic.

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A new generation of Nvidia gaming chips uses artificial intelligence to predict what the value of seven out of every eight pixels should be, which can save the developer significant time, as opposed to having to calculate what each pixel should be, which can take precious time, including generating entire frames based on artificial intelligence.

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It is not like a movie that is all pre-recorded, but rather it's dynamic, it's moving, and there is user input. I cannot simply place a frame halfway between two frames in a game. According to Justin Walker, a senior director of GeForce products at Nvidia, it's important for me to understand the motion between two frames.