SAN FRANCISCO, May 20 (Reuters) - German chipmaker

Infineon said on Tuesday it will work with Nvidia ( NVDA )

on developing chips for new power delivery systems

inside artificial intelligence data centers.

Infineon said it will work with Nvidia ( NVDA ) 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 ( NVDA ) said they are hoping

to reduce those losses by creating a centralized direct-current

distribution system.

"Through this innovative approach, Nvidia ( NVDA ) 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 ( NVDA ), said in a statement.