Deutsche Bank backs Nvidia's bet to make money on software

Deutsche Bank backs Nvidia’s bet to make money on software

German financial giant Deutsche Bank is backing Nvidia’s ambitions to one day earn hundreds of billions from software enabling a variety of services and applications running on its GPUs.

The often controversial banking giant announced on Wednesday that it has formed a “multi-year innovation partnership with Nvidia to accelerate the use of artificial intelligence and machine learning in the financial services industry.”

With Nvidia’s commercial software being an important aspect of the partnership, the deal reflects the GPU maker’s hopes of one day reaping hundreds of billions in revenue from software and services in addition to the additional hundreds of billions it plans to get chips and systems. , as the company explained at an investor meeting earlier this year.

This means that if Nvidia’s commercial software business grows, the company will be much closer to its vision of vertically integrating into high-value areas like AI computing, owning everything from components like processors, GPUs and SmartNICs; systems; software and services.

The Silicon Valley company will continue to rely heavily on outside companies for systems and software, especially consumer servers, PCs and end-user applications.

But Jensen Huang, CEO and co-founder of Nvidia, has repeatedly made it clear that he now sees the chip designer as a “data center scale” and “full computing” business. . If Huang’s vision is fully realized, Nvidia would have even more power and influence in the computing world than it currently has with the ubiquity of its proprietary parallel programming platform CUDA.

The agreement with Deutsche Bank

Deutsche Bank gave no indication of how much it plans to spend on Nvidia’s software and hardware, but the bank called the partnership “an integral part” of the company’s “ongoing technological transformation.” 153-year-old financial institution.

“AI, ML and data are going to be game changers in banking, and our partnership with Nvidia is further proof that we are committed to redefining what is possible for our customers,” said Christian Sewing, CEO of Deutsche Bank, in the press release.

Under the partnership, Deutsche Bank will operate two of Nvidia’s commercial software services. The first is Nvidia AI Enterprise, a suite of AI tools and frameworks intended to take the guesswork out of developing and running GPU-accelerated applications in containers and virtual machines, regardless of whether they run. run in the cloud or on-premises.

Deutsche Bank said it plans to use AI Enterprise to accelerate the development and management of risk management models while improving energy efficiency.

The second commercial software is Nvidia Omniverse Enterprise, a suite of codes for creating 3D spaces and running large-scale digital simulations, although the GPU maker is happy to use the buzzword “metaverse” to describe it.

Deutsche Bank is using Omniverse Enterprise to develop a 3D virtual avatar to help employees “navigate internal systems and answer HR-related questions”. (Oh, joy.) The bank is also exploring the possibility of creating “immersive experiences” for banking customers.

The bank also plans to work with Nvidia to develop large machine-learning language models called “financial transformers” that will be used to, among other things, detect early warning signs of problematic transactions, identify data quality issues and enable faster data recovery.

Given Deutsche Bank’s reputation for being embroiled in controversy, the financial institution seems at least aware of the potential pitfalls of AI, so the bank said it will “develop, foster and promote an AI explainable and accountable to expand understanding of model predictions” as part of an expansion the bank is making with Nvidia for an in-house AI center of excellence. ®

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