Nvidia transformation: From mining leader to AI powerhouse
How Nvidia's interests have evolved over the years.
For most people, the Nvidia brand is associated with computer games. However, for a long time, the company’s graphics cards were actively used in the cryptocurrency mining industry. Today, Nvidia is betting on artificial intelligence—and its ambitions are nothing short of grand.
Nvidia was founded in 1993 in California by three engineers—Jensen Huang, Chris Malachowsky, and Curtis Priem. The company emerged at the dawn of the personal computer era. The founders saw potential in developing specialized graphics processors capable of rendering images faster and more efficiently than standard CPUs.
The first major breakthrough came in 1997 with the launch of the RIVA 128 graphics accelerator. The device gained widespread popularity due to its high performance. However, true success came in 1999, when Nvidia introduced the world’s first graphics card supporting GPU architecture—GeForce 256.
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The GeForce line allowed Nvidia to rapidly capture the gaming graphics card market and establish itself as a tech leader. Over the following years, the company strengthened its position in the computer graphics industry, supplying chips for gaming PCs, workstations, and consoles.
The mining era
In the mid-2010s, Nvidia's graphics cards found a new and unexpected use—they became highly sought after by cryptocurrency miners, especially those mining Ethereum. The architecture of GPUs turned out to be ideal for the complex calculations underpinning the Proof-of-Work algorithm used by Ethereum. GeForce cards delivered excellent performance-to-power-consumption ratios, making them one of the most popular choices in the crypto space.
Demand was so high that the company simply couldn’t keep up with the needs of both gamers and miners. Stores ran out of stock, prices for graphics cards skyrocketed, and speculation in the secondary market became widespread. According to Jon Peddie Research, about 25% of graphics cards shipped in Q1 2021 ended up with miners—roughly 700,000 gaming GPUs worth $500 million.
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Nvidia even attempted to release specialized versions of its cards (CMP—Cryptocurrency Mining Processor) to ease the strain on the gaming segment, but was ultimately unable to control the frenzy. Graphics cards became the object of a global gold rush, and the company struggled to meet demand.
"Am I excited about Ethereum moving to Proof-of-Stake? The answer’s yes. I believe that demand for Ethereum has reached such a high level that it would be nice if someone came up with an ASIC to mine it, or for there to be another method," Nvidia CEO Jensen Huang said in an interview in 2021.
And it seems his wish came true. In September 2022, Ethereum transitioned to a new algorithm, fully abandoning mining. This sharply reduced GPU demand in the crypto world and marked the end of an era when graphics accelerators were used to mint coins. While some cryptocurrencies are still mined with GPUs, the practice is no longer mainstream.
The AI reality
After the crypto boom, Nvidia shifted its focus to artificial intelligence—a move that proved visionary. The company began rapidly scaling up the production of GPUs designed not only for gaming, but also for machine learning and data processing.
Demand for AI computing turned out to be both global and enduring. Driving this demand were companies like OpenAI, Google, Microsoft, Amazon, and dozens of others building data centers powered by Nvidia GPUs. These centers process massive datasets, train language models, run generative neural networks, and enable cloud-based AI services—from generating images and text to bioinformatics and autonomous driving. Over time, Nvidia began selling not only chips but full-scale server solutions.
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Nvidia’s business grew exponentially. By the end of 2023 and 2024, revenue from its data center segment surpassed that of the gaming and enterprise segments combined. In the first fiscal quarter of 2025, Nvidia reported revenue of $44.1 billion—$39.1 billion of which came from its data center division.
Today, the company dominates the high-performance computing and AI chip markets, holding around 80% of market share. Nvidia’s market capitalization has surpassed $3.5 trillion, and Nvidia stock price is nearing $150.
What the future holds for Nvidia
Nvidia has high hopes for the AI sector, and its recent initiatives clearly demonstrate its ambitions. For the first time in its history, the company is launching large-scale production of AI supercomputers in the United States. In partnership with others, it is building massive manufacturing operations for Blackwell chips and AI servers in Texas and Arizona. Investments in this initiative may reach $500 billion over the next four years.
Another remarkable innovation is the integration of humanoid robots into the production process. In Houston, these robots will assemble AI servers. By Q1 2026, the robots are expected to begin performing tasks such as assembly, cable installation, and component transportation.
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Nvidia also believes in the future of AI agents—autonomous digital assistants set to become a new “workforce” for business. The company’s CEO called this emerging sector “a multi-trillion-dollar opportunity” and expressed confidence that AI agents will be capable of communicating with one another by 2025.
Progress doesn’t stop
Nvidia has come a long way—from making graphics chips for gaming to becoming one of the key architects of tomorrow’s technological landscape. During the crypto boom, its GPUs were mainly used to mine cryptocurrencies. Today, they underpin almost every major AI development—from generative models to autonomous vehicles.
Nvidia didn’t just adapt to a new trend—it led the charge, setting the pace for the entire industry. Its aggressive investment strategy, AI-factory construction, focus on supercomputers, and manufacturing automation reflect a company prepared for long-term leadership. Nvidia is no longer just a hardware provider—it is shaping the future of technology.
