NVDA Stock Alert: Nvidia Unveils New AI Model With Mistral
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Nvidia (NASDAQ:NVDA) stock is well in the green today after the chipmaker announced a new language model with French startup Mistral AI. Indeed, the two companies unveiled Mistral-NeMo, a language model intended to integrate artificial intelligence (AI) directly onto business computers.
“We’re launching a model that we jointly trained with Mistral. It’s a 12 billion parameter model, and we’re launching it under Apache 2.0,” said Bryan Catanzaro, vice president of applied deep learning research at Nvidia. “We’re really excited about the accuracy of this model across a lot of tasks.”
Some see the surprise collaboration as a sign of changing tides within the AI industry. For Nvidia, one of the world’s most valuable companies and perhaps the biggest current player in the AI race, to team up with Mistral, a relatively small startup in the European AI world, might mark greater equitability regarding access to advanced AI technology.
According to Catanzaro, the real advantage of the new language model is its small size.
“The smaller models are just dramatically more accessible,” he said. “They’re easier to run, the business model can be different, because people can run them on their own systems at home. In fact, this model can run on RTX GPUs that many people have already.”
Mistral-Nemo’s 128,000 token context window is a particularly noteworthy feature of the language model. This allows the model to understand far lengthier blocks of text than other language models, making it increasingly effective in real-world scenarios.
“We think that long context capabilities can be important for a lot of applications,” Catanzaro said. “If they can avoid the fine-tuning stuff, that makes them a lot simpler to deploy.”
New Language Model Lifts NVDA Stock After Short Slump
It seems Nvidia investors are encouraged by today’s news. Indeed, NVDA stock is up more than 2.5% today after shedding more than 6% of its value on Wednesday.
Indeed, Nvidia and most other chipmakers on Wall Street experienced a brief selloff on Wednesday after Bloomberg reported that the Biden administration is considering instituting stricter controls on foreign manufactured products that use even a little American technology. This, of course, would implicate practically the entire semiconductor field, much of which is exported to China.
Former President Trump also contributed to the drawdown by suggesting that Taiwan “should pay” the U.S. for protection from China and stating that Taiwan took “about 100%” of the U.S. semiconductor industry.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor held a LONG position in NVDA.