There's no question that Advanced Micro Devices (NASDAQ: AMD) has failed to keep up with rival (NASDAQ: NVDA) in the data-center GPU market. While AMD sells data-center GPUs of its own, aimed at accelerating a wide variety of workloads, estimates for NVIDIA's share in the data-center market run as high as 95%.

NVIDIA's data-center GPUs are powerful, but its biggest advantage is software. It's the ecosystem that NVIDIA has built around its data-center GPUs that has ultimately made them the de facto standard. NVIDIA CUDA, a proprietary parallel-computing platform from NVIDIA that only runs on its own GPUs, has been around for 16 years. NVIDIA has been laying the foundation of its data-center dominance for a long time.

Data-center GPUs can be used for many types of workloads, but artificial intelligence is quickly becoming the most prominent. Training the large language models that make services like OpenAI's ChatGPT possible requires tens of thousands of ultra-powerful GPUs working in tandem to churn through enormous amounts of training data.

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Source Fool.com