This term first came to light in 2020 from two Harvard Business School professors, Marco Iansiti and Karim Lakhani, who described it in their paper, “Competing in the Age of AI.” NVIDIA latched onto the term in 2022 during when NVIDIA CEO Jensen Huang used the term during the 2022 NVIDIA GTC Keynote.
Today, NVIDIA has a team that specializes in consulting with IT teams that want to build system-level AI functionality and capabilities with AI factories. NVIDIA Vice President of Americas Charlie Wuischpard likens the company’s philosophy on building AI factories to that of building a five-layer cake.
The Five Layers of NVIDIA’s Framework for AI Factories
The structure for NVIDIA’s framework takes a top-down approach to AI factories, starting with the industry and organizational applications of AI and drilling all the way down to considerations around energy infrastructure.
Here are the specific five components of NVIDIA’s AI Factory framework:
- Applications
- Models
- Infrastructure
- GPUs (chips)
- Energy
Starting at the top layer, applications, this is where a lot of the societal-level conversation is happening beyond just the IT discipline, as the applications of AI technology to solve real-world problems are what non-IT people are experiencing, experimenting with and testing out. And some of that experimentation could lead to some exciting breakthroughs.
“The super-exciting stuff is the applications and the way the technology is being used to move innovation,” said Wuischpard. “We all have chatbots, we all use it to enhance our day. I sometimes get a little sick of the AI-generated PowerPoints, because they can be wrong sometimes, but some of the really cool stuff happening, and I’m honored to have that sort of visibility, is, for example, in digital biology.”
“Let’s think of that as drug discovery developing new drugs faster. Almost every large pharma company today has, believe it or not, a machine now between $100 million and $500 million and growing. But it costs billions of dollars to bring a new drug to market, so that spend is kind of understandable. And anything that gives an edge is a huge advantage,” he added.
The model layer is where the ongoing debates and discussions around open-source and open-weight models are happening, including household names such as ChatGPT and Claude. From Wuischpard’s perspective, he sees both open-source and frontier models as adding value to the overall AI ecosystem.
