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German chipmaker Infineon to work with Nvidia on power delivery chips 

Published by Global Banking & Finance Review

Posted on May 20, 2025

2 min read

· Last updated: January 23, 2026

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German chipmaker Infineon to work with Nvidia on power delivery chips 
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By Stephen Nellis SAN FRANCISCO (Reuters) -German chipmaker Infineon said on Tuesday it will work with Nvidia on developing chips for new power delivery systems inside artificial intelligence data

Infineon Partners with Nvidia to Develop Advanced Power Delivery Chips

By Stephen Nellis

SAN FRANCISCO (Reuters) -German chipmaker Infineon said on Tuesday it will work with Nvidia on developing chips for new power delivery systems inside artificial intelligence data centers.

Infineon said it will work with Nvidia to develop high-voltage, direct current power delivery systems. In current data centers, most high-voltage power is distributed as alternating current and then converted to the direct current needed by computer chips by individual power supply units inside of servers. 

But that method of distributing power introduces losses in moving power around and converting it. With each server rack within AI data centers expected to take a megawatt of power by the end of the decade, Infineon and Nvidia said they are hoping to reduce those losses by creating a centralized direct-current distribution system.

“Through this innovative approach, Nvidia is able to optimize the energy consumption of our advanced AI infrastructure, which supports our commitment to sustainability while also delivering the performance and scalability required for the next generation of AI workloads,” Gabriele Gorla, vice president of system engineering at Nvidia, said in a statement.

(Reporting by Stephen Nellis in San Francisco; Editing by Lisa Shumaker)

Key Takeaways

  • Infineon partners with Nvidia to develop power delivery chips.
  • Focus on high-voltage direct current systems for AI data centers.
  • Centralized power distribution aims to reduce energy losses.
  • Nvidia seeks to optimize energy consumption for AI infrastructure.
  • The collaboration supports sustainability and performance goals.

Frequently Asked Questions

What is the focus of Infineon's collaboration with Nvidia?
Infineon is collaborating with Nvidia to develop chips for new power delivery systems inside artificial intelligence data centers.
What type of power delivery systems are being developed?
They are focusing on high-voltage, direct current power delivery systems, which aim to reduce losses associated with power distribution.
Why is the new power delivery method important for AI data centers?
The new method is crucial as each server rack in AI data centers is expected to require a megawatt of power, making efficient power distribution essential.
How does this collaboration support sustainability?
Nvidia's innovative approach helps optimize energy consumption in AI infrastructure, aligning with their commitment to sustainability.

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