Nvidia Aims Beyond Chips With New AI Agent Software Push

GuruFocus
04-25

Nvidia (NVDA, Financial) is stepping further into the enterprise AI space with its latest offering: NeMo microservices. The new platform is designed to help businesses create AI agents—what Nvidia calls “AI teammates”—that can operate independently and support enterprise tasks.

According to The Wall Street Journal, the company is targeting a $1 trillion opportunity as AI agents gain traction and begin to challenge traditional enterprise software. NeMo allows companies to build AI tools using open-weight models—less restrictive alternatives to proprietary systems from players like OpenAI and Anthropic. While the platform itself isn't fully open-source, it supports models from Meta (META, Financial) and Mistral AI that reveal their architecture, offering companies more flexibility and control over their data.

That's a key draw for businesses handling sensitive or regulated information. “We're focusing on where businesses need full control,” said Joey Conway, Nvidia's senior director of enterprise generative AI.

The move reflects Nvidia's broader strategy: blend its dominant GPU hardware with software that keeps users in its ecosystem. NeMo is cloud-agnostic, too—meaning customers aren't tied to one cloud provider, which is appealing to many enterprise tech buyers.

While adoption of AI agents has been gradual, Nvidia aims to streamline the process, making it easier for businesses to integrate internal data into AI systems. NeMo enters a competitive field that includes Microsoft (MSFT, Financial), Google (GOOG, Financial), Amazon (AMZN, Financial), and OpenAI—but Nvidia's established presence in AI infrastructure may give it a strong advantage.

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