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In its 2026 fiscal year, Nvidia spent **** billion U.S. dollars on research and development (R&D), an increase from the **** billion U.S. dollars that was spent on R&D in the previous period. The figure for 2026 is also the highest for the company. 

Nvidia’s journey into AI

In the course of a decade, Nvidia CEO Jensen Huang has overseen the company’s move beyond gaming and into AI. Strong demand for data center products that are essential to generative AI has helped fuel the company’s successes. A notable example of Nvidia’s technologies being deployed to train and run a large language model is that of ChatGPT.

Cloud providers are developing their own AI chips

While fellow chipmakers AMD and Intel may seem the natural competitors to Nvidia in the AI space, the major cloud computing providers could pose another substantial threat to Nvidia going forward. Already, these firms are developing their own AI chips in a bid to cut into Nvidia's lead, as well as tap into an ever-growing AI chip market. By developing AI chips in-house, firms can cut costs and reduce reliance on one specific supplier.