Nvidia Just Qualified Tesla and Vertiv Products for Its New AI-Factory Standard

Nvidia has expanded its reach into the electrical and cooling equipment that determines whether an AI data center can function. On September 21, the company launched its DSX Ready program, acknowledging Tesla, Inc. and Vertiv Holdings Co as qualified suppliers. This initiative essentially creates a compatibility layer for physical AI factories, potentially reducing design work for developers and increasing Nvidia's influence.

Nvidia benefits from such a program if it decreases friction in deploying dense accelerated-compute systems. The program's significance lies in Nvidia defining what a deployable AI factory should look like, with Tesla and Vertiv potentially benefiting if customers view qualification as a shortcut. However, qualification doesn't guarantee project wins, and data-center developers may prefer alternative battery vendors.

Vertiv's 2.3-megawatt CoolChip coolant distribution unit has been qualified for the program, giving the company a chance to grow faster than the data-center footprint itself. Insider Monkey's Q2 database shows a rise in hedge-fund holdings for Nvidia, Tesla, and Vertiv, although these filings occurred before the DSX announcement.