The metaverse is the next big thing and the future according to the most famous tech luminaries with the most infamous being Mark Zuckerberg, changing the name of Facebook to Meta Platforms (Nasdaq: FB). Unity Software (Nasdaq: U) also completed its purchase of Peter Jackson's Weta Digital for $1.6 billion which is to provide more tools for developers to create better content within the metaverse.
Now, we can also add Nvidia (Nasdaq: NVDA) CEO Jensen Huang to that list as the company has been preparing a comprehensive strategy for the metaverse. Recently, it unveiled new capabilities to its collaborative engineering and modeling metaverse program including the ability to create digital "twins" of real-world projects to speed development.
While companies like Facebook and Microsoft (NASDAQ: MSFT) have offered their own versions of the metaverse, Nvidia has its own version which fits their DNA. Its platform, Omniverse, allows for metaverse-style collaboration and provides integrated tools to help others further their own metaverse development. In a way, this is a combination of Unity's engine and Facebook's VR world.
Omniverse has been available to engineers as an open beta since last fall. The company has been adding new features and capabilities that companies like BMW, DeepMind, and Siemens are already putting to work for various uses such as automation, equipment maintenance, and drug development.
Nvidia is facing increased competition for its graphic and AI chips. Having some stake and ownership of the metaverse would ensure higher levels of demand for Nvidia's chips. It would also give it exposure to higher-margin sources of revenue.
Remarkably, Nvidia has reached an $800 billion valuation, making it a stealth candidate to become one of the most valuable companies in the world. The companies' chips are used and integral for so many of the biggest and most impactful next-generation and current-generation technologies such as AI, autonomous driving, machine learning, cloud computing, video games, VR, AI, cryptocurrencies, etc. It's now clear that Nvidia is working to ensure that its hardware and software will also be integral to the metaverse.