Nvidia targets CPU market as AI agents reshape computing demand

AI agents are increasing the importance of CPUs alongside GPUs as software moves from answering questions to completing tasks. Nvidia chief Jensen Huang describes an agent as a harness around an AI model that manages inputs, outputs, memory and tool use. Those functions run on CPUs, while GPUs handle the model’s processing. The shift creates an opening for Nvidia in a market long led by AMD and Intel.

Nvidia is rolling out its Vera Rubin platform, featuring its first stand-alone CPU designed specifically for agentic AI. The company claims up to 1.5x faster performance per core than CPUs based on x86 architecture. Nvidia is on track to generate $20 billion in stand-alone CPU revenue this year and puts the market opportunity at $200 billion. AMD also anticipates stronger demand: according to TrendForce, it expects server CPU market growth of more than 35% annually, topping $120 billion by 2030.

Established customer relationships and software compatibility remain significant hurdles. AMD and Intel have decades of CPU experience, while customers using software built for x86 chips may be reluctant to switch to Nvidia’s different architecture. Expanding demand could nevertheless create room for Nvidia without requiring it to displace the incumbents. Its ability to capture market share and convert that demand into revenue will determine how significant CPUs become to its business.