Nvidia Stock (NVDA) Looks Less Tasty Despite Taking AI to Noodles Centre of Japan
Nvidia's stock (NVDA) fell despite announcing a significant AI partnership with Kagawa Prefecture in Japan, aimed at enhancing AI use among local companies and developing data centers. This marks the first AI deal with a local government in Japan. Kagawa, known for its low natural disaster risk and stable electricity, seeks to boost productivity through Nvidia's technology. Nvidia aims to expand its global presence, with Japan being a key focus.
Shares in semiconductor giant Nvidia (NVDA) slipped today despite striking a breakthrough AI deal in a Japanese region best known for its tasty noodles.
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First Regional AI Deal
Nvidia said that it had signed a partnership with Kagawa Prefecture in Western Japan to expand the use of AI among companies in the region and look into the development of data centers. The partnership is the first such deal struck by a local government in Japan.
Kagawa Prefecture, Japan's smallest by area and well known for udon noodles, has been promoting the region as an ideal place to work, particularly toward technology companies, due to its low risk for natural disasters and stable electricity supply.
It also hopes to improve the productivity of firms located within the prefecture by gathering companies utilizing graphics processing units developed by Nvidia, the prefectural government said.
"We take pride in Kagawa's advantageous location when it comes to the operation of GPU centers," Kagawa Gov. Toyohito Ikeda said. "We hope to expand the implementation of AI for firms in the prefecture by enlisting Nvidia's help."
Masataka Osaki, head of Nvidia's Japanese unit, said, "A range of AI catered to individual regions has been launched globally. We hope Kagawa Prefecture will become a role model across the country."
Nvidia's Global Expansion
As seen below, Nvidia's revenues are driven by the U.S. but it is trying to expand its global reach. It's already been making progress in Japan.
