Nvidia thinks it can make a billion from the cloud

nvidiaMaker of chips that help you see things, Nvidia, expects its cloud computing revenue to hit $1 billion in the next two to three years.

It says that demand for big data analysis drives growth in graphics chips.

CEO Jen-Hsun Huang told reporters a day before the Taipai Computex show that cloud computing is the company’s fastest-growing segment, with revenue increasing at about 60-70 percent a year.

Cloud computing allows people to play graphics-heavy games over the Internet, Huang said. He also noted that the company’s GPUs can now be used for a wide variety of applications, such as voice commands like those used by Microsoft’s search engine.

However he warned that it is going to be a while before people can start playing streamed games at the 4K resolution.

While it is possible to stream 4K movies from online services like Netflix to PCs, TVs and set-top boxes, streaming games from the cloud requires many infrastructure changes, said Jen-Hsun Huang said.

Nvidia can currently stream 1080p games at 60 frames per second from its Grid online gaming service, but the technology needs to be developed for 4K streaming and a lot of fine-tuning is needed at the server level, Huang said.

“It’s going to be a while,” Huang said.

The cloud is not the only area that Nvidia has also been moving into. Lately it signed up for an automotive chip programme with automaker Tesla Motors.