Tech, Media & Telecom
Naver replaces Nvidia GPU with Intel CPU for its AI map app server
The Naver-Intel tie-up will likely diminish Nvidia’s clout in the AI processor market, analysts say
By Oct 30, 2023 (Gmt+09:00)
2
Min read
Most Read
LG Chem to sell water filter business to Glenwood PE for $692 million


Kyobo Life poised to buy Japan’s SBI Group-owned savings bank


KT&G eyes overseas M&A after rejecting activist fund's offer


StockX in merger talks with Naver’s online reseller Kream


Mirae Asset to be named Korea Post’s core real estate fund operator



South Korea’s web portal giant Naver Corp. has replaced the main chip supplier of its artificial intelligence server for its map service, Naver Place, from Nvidia Corp. to Intel Corp.
Naver has so far used Nvidia’s graphic processing unit (GPU)-based server to run its AI-powered location information provision service but recently replaced it with Intel’s central processing unit (CPU)-based server, people familiar with the matter said on Monday.
Naver’s AI server switch comes as global information technology firms are increasingly disgruntled with Nvidia’s GPU price hikes and a global shortage of its GPUs.

The Korean tech company utilizes an AI model to distinguish false information from useful data when users search for information using such terms as “nearby restaurants” on the Naver Map app for the Naver Place service.
This process involves data processing, inference and verification, and Naver has used Nvidia’s GPU chips to power such processes.
SHORT SUPPLY OF AI GPUs
However, it has become increasingly hard to secure GPU accelerators, including Nvidia’s H100, which use multiple chips for data processing and computing, due to growing demand for their use in generative AI devices.

The price of an AI accelerator using Nvidia’s GPUs has risen to as high as 80 million won ($59,193) from about 40 million won earlier this year, making it costlier for AI server users to upgrade their systems, industry officials said.
To make things worse, the lead time, or the time to get Nvidia’s GPU-based accelerators after placing an order, has grown to 52 weeks, making it even harder for a system upgrade, they said.
Nvidia produces GPUs used in generative AI devices such as ChatGPT, a chatbot developed by Microsoft Corp.-backed OpenAI, which requires semiconductors that can process large data quickly.
The US chip designer has been heavily relying on Taiwan Semiconductor Manufacturing Co. (TSMC) for the chip packaging of its GPUs and accelerators. With TSMC’s packaging process lines almost fully booked, however, Nvidia is turning to other foundry players such as Samsung Electronics Co.

INTEL IMPROVES CPU CAPABILITIES
Industry officials said GPU servers usually handle AI inference processes 10 times faster than CPU servers.
However, Intel considerably improved its AI inference process time for those clients seeking alternatives to Nvidia’s GPUs, industry watchers said.
Naver has gone through a month of test runs of its Intel CPU-powered AI server before putting it into service, sources said.
The Korean company will likely continue to use Intel’s next-generation CPUs, such as the Sapphire Rapids CPU, for its system upgrades to offer better location and other information search services, they said.

Analysts said the Naver-Intel tie-up may lead to a further diminishing of Nvidia’s influence in the AI processor market.
Microsoft Corp. has reportedly teamed up with fabless chip designer Advanced Micro Devices Inc. (AMD) to help bolster the US chipmaker’s expansion into AI processors.
The two companies are joining forces to compete against Nvidia, which controls an estimated 80% market share in the global AI processor market, media reports said.
Write to Jeong-Soo Hwang at hjs@hankyung.com
In-Soo Nam edited this article.
More to Read
-
Artificial intelligenceNvidia invests in Korean generative AI startup Twelve Labs
Oct 24, 2023 (Gmt+09:00)
4 Min read -
Korean chipmakersSamsung set to supply HBM3 to Nvidia, develops 32 Gb DDR5 chip
Sep 01, 2023 (Gmt+09:00)
4 Min read -
Artificial intelligenceNaver eyes global market with new LLM HyperCLOVA X
Aug 24, 2023 (Gmt+09:00)
4 Min read -
Korean chipmakersSK Hynix provides samples of best-performing HBM3E chip to Nvidia
Aug 21, 2023 (Gmt+09:00)
3 Min read -
Korean chipmakersSamsung, SK Hynix to benefit from Intel’s Sapphire Rapids CPU
Jan 11, 2023 (Gmt+09:00)
2 Min read
Comment 0
LOG IN