Nvidia wins AI cloud startup Modal for Vera processor, taking business from Intel, AMD
The startup, valued at $15.75 billion, had used only Intel and AMD chips. In early tests, AI agents got twice as much work done on Nvidia's Vera.
Nvidia has won a new customer for its Vera central processor: Modal, a cloud startup that rents computing power to AI developers, plans to use the chips for the first time to host AI agents that carry out long-running tasks. Until now Modal had relied entirely on Intel and AMD processors, Reuters reported.
Modal said early tests showed Nvidia's chip doubled the amount of work AI agents could complete compared with Intel and AMD chips currently on the market. Both rivals are developing newer models. "We'll test them when they're available," Modal CEO Erik Bernhardsson said. The company will run all three vendors' chips in a mixed fleet, sending each job to the hardware that handles it best.
Modal recently raised $750 million at a $15.75 billion valuation and says it is on track for $1 billion in sales over the next year. Nvidia expects at least $20 billion in Vera sales this fiscal year, and OpenAI, Anthropic and Oracle also plan to use the chip.