Sept 9 (Reuters) - Nvidia ( NVDA ) said on Tuesday it

would launch a new artificial intelligence chip by the end of

next year, designed to handle complex functions such as creating

videos and software.

The chips, dubbed "Rubin CPX", will be built on Nvidia's ( NVDA )

next-generation Rubin architecture - the successor to its latest

"Blackwell" technology that marked the company's foray into

providing larger processing systems.

As AI systems grow more sophisticated, tackling data-heavy

tasks such as "vibe coding" or AI-assisted code generation and

video generation, the industry's processing needs are

intensifying.

AI models can take up to 1 million tokens to process an hour

of video content - a challenging feat for traditional GPUs, the

company said. Tokens refer to the units of data processed by an

AI model.

To remedy this, Nvidia ( NVDA ) will integrate various steps of the

drawn-out processing sequence such as video decoding, encoding,

and inference - when AI models produce an output - together into

its new chip.

Investing $100 million in these new systems could help

generate $5 billion in token revenue, the company said, as Wall

Street increasingly focuses on the return from pouring hundreds

of billions of dollars into AI hardware.

The race to develop the most sophisticated AI systems has

made Nvidia ( NVDA ) the world's most valuable company, commanding a

dominant share of the AI chip market with its pricey,

top-of-the-line processors.