Nvidia acknowledges the significant challenges in Samsung's AI storage chip design, but remains confident in the future prospects.

NVIDIA Corporation (NVDA.US) co-founder and CEO Jensen Huang said that Samsung Electronics Co. encountered difficulties when producing a new type of storage chip for artificial intelligence systems, but he expressed confidence in the company's ability to overcome these challenges. The latest High Bandwidth Memory (HBM) is an important component of the new artificial intelligence systems using NVIDIA Corporation chips. Samsung has been lagging behind competitors like SK Hynix in producing HBM that meets NVIDIA Corporation's standards, and Huang acknowledged these challenges at a press conference at the Consumer Electronics Show (CES) in Las Vegas on Tuesday. Huang said at the conference, "They have to come up with a new design. But they can do it, they are working fast, and they are committed to doing so." Samsung is the world's largest memory chip manufacturer, but it lags behind its competitors in the lucrative artificial intelligence market. These challenges have put pressure on the company's latest quarterly earnings released on Wednesday morning, which fell far below analysts' expectations. Over the past two years, sales of artificial intelligence computing systems supported by NVIDIA Corporation have seen explosive growth. NVIDIA Corporation's chips are the core of these machines, which create artificial intelligence models by inputting large amounts of data into software. Storage chips provide information to the processors, making them a crucial component of operation. Samsung has been working to overcome various obstacles. The company is trying to increase memory speed and capacity, and integrate components closely with processors, which adds new complexity to chip production. Huang responded, "Without a doubt, they will succeed, I have confidence in that. Samsung will succeed in HBM."