PubMatic (NASDAQ:PUBM) shares surged 13% on Wednesday after the company reported a major breakthrough from its multi-year collaboration with NVIDIA (NASDAQ:NVDA), achieving ad decision processing speeds up to five times faster than traditional systems.
The independent ad tech firm has fully integrated NVIDIA’s accelerated computing technology into its infrastructure, slashing inference latency from the industry norm of 5–10 milliseconds to roughly 1 millisecond. This leap in performance has led to an 85% reduction in auction timeouts, allowing PubMatic to recover significant ad revenue previously lost to system delays.
The NVIDIA-powered upgrade includes the deployment of L40S GPUs for real-time ad decisioning, Triton Inference Servers for efficient ad request routing, and the RAPIDS Accelerator for Apache Spark to enhance analytics speed. The result is a 30% decrease in energy consumption alongside substantially higher performance.
With this collaboration, PubMatic is bringing cutting-edge AI capabilities to the open internet, enabling it to rival walled garden ecosystems. Its owned infrastructure now supports microsecond-level decisioning at massive scale, handling trillions of ad transactions daily — faster than most consumer AI models.
“We’ve always believed that technology should empower the many, not just the few,” said Mukul Kumar, Co-Founder and President of Engineering at PubMatic. “This collaboration with NVIDIA exemplifies how innovation happens, through iterative testing, shared real-world performance data, and truly optimizing for programmatic advertising’s unique challenges.”
The upgraded infrastructure has fueled PubMatic’s AI-driven product expansion throughout 2025, including next-generation platforms for advertisers and publishers featuring generative and agentic AI. The company also unveiled a Live Sports Marketplace, designed to handle the massive scale and unpredictability of premium live sports streaming events.
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