On Wednesday, Nvidia released striking benchmark data demonstrating a massive jump in processing power. According to the company, the Nvidia latest AI server can accelerate complex artificial intelligence models by a factor of ten.
The demonstration specifically highlighted the “Kimi K2 Thinking” model, developed by China’s Moonshot AI.
Pivoting to Inference
This announcement marks a strategic shift in the chip wars.
For years, the industry focused heavily on “training”—the massive computational task of teaching an AI. Now, the battlefield has moved to “inference.” This is the operational phase where the model answers millions of user questions daily.
Consequently, the race is on to make this process faster and cheaper. Rivals like Cerebras and Advanced Micro Devices (AMD) are aggressively targeting this lucrative sector.
Optimizing for Mixture-of-Experts
Nvidia’s new data focuses on a specific architecture known as “mixture-of-experts” (MoE).
Unlike traditional models that activate an entire neural network for every query, MoE systems break questions down. They route specific tasks to specialized “experts” within the digital brain.
This method gained traction earlier in 2025. DeepSeek, a Chinese lab, stunned the tech world by releasing a high-performance open-source model using MoE. It required far less training time on Nvidia chips than Western competitors.
Since then, industry heavyweights have adopted the MoE approach, including:
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OpenAI: The creator of ChatGPT.
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Mistral: A leading French AI startup.
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Moonshot AI: Released a highly-ranked model in July.
Nvidia Latest AI Server Power
Nvidia is determined to prove its hardware is the best engine for these efficient models.
To achieve the reported 10x speed boost, the company relies on brute force engineering. Their newest system packs 72 top-tier chips into a single computer. Furthermore, these processors are connected via ultra-fast data links.
This dense architecture allows the system to process the Kimi K2 model at speeds matching the gains seen with DeepSeek.
Rivals Close the Gap
However, Nvidia’s dominance is not unchallenged.
While the company currently holds the lead, competitors are finalizing their own solutions. AMD has announced it is developing a similar high-density server architecture. Their alternative is scheduled to hit the market next year, setting the stage for a fierce hardware showdown.
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