Nvidia-Cadence partnership to take data centers to next level
Chip giant Nvidia (NVDA) — currently showcasing its latest semiconductor and AI products at its 2024 GTC event — will be expanding its partnership with software company Cadence Design Systems (CDNS), particularly for its electronic design automation (EDA) tools and "digital twin" simulations.
Cadence Design Systems Senior Vice President and General Manager of Strategy and New Ventures Nimish Modi joins Yahoo Finance Live to discuss the company's collaborations with Nvidia on its expanding array of artificial intelligence projects.
"AI, overall, is creating a massive explosion of data, and it's driving massive demand for high-density, high-performance compute and more data centers," Modi says. "There is... some industry data which says about 3 to 4% of the total electricity is consumed by data centers, and that's expected to grow significantly."
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
[INTRO PLAYING]
BRAD SMITH: Artificial intelligence powerhouse Nvidia announcing a slew of strategic partnerships at its GTC conference on Monday afternoon as it looks to scale AI development across industries. Software company Cadence Design Systems is one of those names now expanding its relationship with Nvidia, and shares of Cadence rising following the news.
Joining us live from the GTC conference in San Jose, California, is Nimish Modi, who is the Cadence Design Systems Senior Vice President and General Manager of Strategy and New Ventures. Nimish, thanks so much for taking the time. We see in the background that you're still out there. You're in the streets discussing AI chip technology and how Nvidia is going to partner with Cadence here. What should investors expect as a result of this partnership?
NIMISH MODI: Hi, good morning. Thanks for inviting me. And yes, it's just the beginning of the third day we're here and beginning to fill up over here. So, I think we are really excited about our partnership with Cadence. Cadence and Nvidia have been partnering for a long time across a wide range of areas, and we've collaborated for well over a decade.
You know, we are proud that Nvidia extensively uses our chip design and verification tools, are increasing their system design and simulation tools to realize their, you know, trailblazing AI designs. And effectively, our tools create a digital twin of the design so engineers can, you know, simulate the design. Make sure it does what it's supposed to do before committing it to-- to silicon.
And, as Jensen said, digital twins are set to really transform multiple industries. And so one of the announcements we made yesterday was to extend our collaboration to the data center, digital twins for data centers. And over here, we are integrating our reality data center digital twin platform with Nvidia Omniverse, and that will, you know, greatly optimize energy efficiency.
And then another announcement we made, which is very exciting, is in the medicine or life sciences field, where we are integrating Nvidia's generative AI BioNeMo platform with our Orion molecular design platform to accelerate drug discovery.
SEANA SMITH: Yeah. Nimish, going off of that and the partnership and the partnerships that you have had with NVIDIA in the past, what was announced this week, though? Just talk to us about how that is really going to significantly help AI expand its footprint, expand adoption, and what you see that just in terms of being that long-term payout, long-term benefit for Cadence specifically.
NIMISH MODI: Yeah. So I think, you know, AI, overall, is creating a massive explosion of data, and-- and it's driving a massive demand for high-density, high-performance compute and more data centers. I mean, there is, you know, some industry data, which-- which says about 3% to 4% of the global electricity is consumer data centers, and that's expected to grow significantly.
So by-- through this collaboration that we have with-- with Nvidia on the specific front, you know, we are integrating, as I said, our reality, you know, digital twin data center platform with-- with Nvidia's Omniverse. And that drives we virtualized the entire data center, you know, and-- and then you can optimize the design and the-- the operations of the data center through a combination of AI HPC physics-based modeling and improve data-- sorry, energy efficiency by 30%.
And then, with Omniverse, you know, you can get a 30x improvement in the design and simulation workflows. So this is just one example of the partnership that we have. It's a very broad-ranging partnership. And, you know, recently we announced some Millennium M1 supercomputing CFD platform, which is optimized with Nvidia's technology. And then life sciences is the future. I think there's a lot of exciting opportunities over there, and there too, we announced a partnership on the generative AI, you know, BioNeMo platform as well.
