Nvidia’s Newest Product Powered by Israeli AI and Chip Innovations

Israeli innovation was front and center at Nvidia’s highly anticipated annual product launch in San Jose, as the tech giant showcased cutting-edge technologies developed by two Israeli companies Mellanox and Deci that Nvidia has acquired over recent years.

The spotlight shone on Nvidia’s Spectrum-X and Quantum-X chips, designed and developed in Yokne’am and Tel Aviv. These chips revolutionize data center efficiency by utilizing advanced optic technology, eliminating the need for conventional communications switches. The result: lower power consumption and significant cost reductions for major Nvidia clients such as OpenAI, Microsoft, Oracle, and Elon Musk’s xAI. This positions Nvidia as a formidable competitor to industry rivals like Broadcom.

The other major Israeli contribution came from Deci, acquired last year for $300 million. Deci, originally one of Israel’s leaders in developing large language models, has now become a key part of Nvidia’s AI strategy. Nvidia revealed its latest product a series of large reasoning models intended for advanced AI agents capable of performing complex tasks. Marketed under the name Llama Nemotron, these models are based on Meta’s open-source Llama framework and will be offered open-source to attract customers to Nvidia’s premium AI services.

Nvidia CEO Jensen Huang used the event to address emerging competition from Chinese AI firm DeepSeek, whose recent R1 model disrupted Wall Street and Nvidia’s market value by showcasing AI performance on par with OpenAI’s best. Rather than shying away, Huang positioned DeepSeek's success as a growth opportunity, stressing that increasing model deployment will drive global demand for more processors.

Nvidia’s response includes the newly introduced Blackwell Ultra (GB300) chip the most powerful graphics processor to date, boasting 288 GB of memory and providing inference capabilities 35 times greater than its predecessor, the Hopper series. Complementing this is Dynamo, partially developed in Israel, a software environment that allows companies to run reasoning models across up to 1,000 GPUs with 30 times more efficient power consumption.

Significantly, Nvidia plans to package these innovations including the Israeli-developed Quantum-X and Spectrum-X chips into complete server racks, providing clients with a single-supplier solution that could outmatch competitors like Dell, HP, AMD, and Broadcom.

In the automotive sector, Nvidia unveiled its new Halos AI-based driving safety system. The announcement, coupled with an agreement with General Motors to collaborate on autonomous vehicle development, rattled competitors like Mobileye, whose stock dropped by 3.5%. Nvidia’s partnerships with Mercedes, Jaguar, and Land Rover further underscore its ambitions to dominate the future of intelligent driving.

Israel’s role in Nvidia’s latest innovations reflects the country’s growing influence in shaping the next generation of AI, chip technology, and global tech leadership.

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