Nvidia’s chief exec believes cloud will generate over $1bn annually for the firm in just a few years

Chip maker and GPU specialist Nvidia Corp said it expects cloud computing to generate over $1bn in revenues for the firm in the next few years, according to a report from Reuters.

Speaking to reporters at Computex Nvidia’s chief executive officer Jen-Hsun Huang also said the company expects cloud revenues to grow between 60 and 70 per cent each year.

A number of cloud service providers have borrowed from the high performance computing world to add GPU acceleration to their services in a bid to cope with diminishing returns on CPU performance.

HPC and cloud revenue at Nvidia was $79m for the recently reported Q1 2016, up 57 per cent year-on-year, and the company has over the past year or so announced some large deals with companies like Baidu, Facebook, Flickr, Microsoft and Twitter, largely around its Tesla and GRID offerings.

Last year it also struck a deal with AWS to add GPU-accelerated instances to its growing roster of services.

Nvidia has said much of its growth in recent quarters has come from datacentre, cloud, gaming and automotive, and that its deals with virtualisation incumbents VMware and Citrix are helping to give it a strong boost in the enterprise. Speaking to journalists and analysts in February this year Huang said its deal with VMware alone means about 80 per cent of the world’s enterprises now support its GRID GPU virtualisation technology.