VMW - VMware teams with Nvidia to allow companies to build private generative AI tools

2023-08-22 13:17:51 ET

Ahead of its second-quarter results, Nvidia ( NASDAQ: NVDA ) teamed up with VMware ( NYSE: VMW ) on Tuesday to allow companies to build their own generative artificial intelligence tools on their own servers.

The deal, announced at the VMware Explore conference, is an expansion of a previous strategic partnership and allows company's that use VMware's ( VMW ) cloud infrastructure to get their businesses ready for generative AI, including further support for data privacy, security and control.

"Together with NVIDIA, we’ll empower enterprises to run their generative AI workloads adjacent to their data with confidence while addressing their corporate data privacy, security and control concerns," VMware CEO Raghu Raghuram said in a statement.

VMware ( VMW ) is in the process of being acquired by Broadcom ( AVGO ) for $69B in cash and stock. On Monday, the deal was cleared by the U.K.'s antitrust regulator, the Competition and Markets Authority.

Pricing for the new tools has not been disclosed, though VMware ( VMW ) added that they would be available next year.

Santa Clara, California-based Nvidia ( NVDA ) is slated to report second-quarter results on August 23 after the close of trading.

Nvidia ( NVDA ) shares fell around 2.5% in mid-day trading on Monday while VMware was fractionally higher.

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