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Nvidia Corp. (NVDA) is gearing up for the future. 

The chip manufacturer announced that it was teaming up with Defense Advanced Research Projects Agency, which is an arm of the U.S. Department of Defense, for a four-year contract worth around $23 million. 

"The Electronics Resurgence Initiative jump-starts innovations to address the challenges stemming from the end of Moore's law," said Steve Keckler, vice president of architecture research at Nvidia. "The technologies that are developed through the ERI program will have a substantial impact on the future of electronic computing devices and Nvidia's future products."

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Moore's law has come up a couple of times throughout phone calls with Colette Kress, Nvidia's CFO. "One, an understanding that the slowdown of Moore's law is in front of us or is actually here today. The slowdown of Moore's law puts in a question in terms of how am I going to get additional throughput and compute capacity out of the overall configurations I have today versus what I had seen in the past. The use of acceleration, therefore, is front and center," said Kress at Nasdaq's investor conference on June 12.

Action Alerts PLUS analyst Zev Fima sees this contract as a good move on Nvidia's part. "At first look, $23 million over 4 years, nothing to get excited about. But the real kicker is that if this is successful, Nvidia's GPUs could be able to compete with ASICs, which many have cited as a source of competition and is a point the bears like to harp on, while still maintaining their programmability and be backwards compatible thanks to CUDA. That is a game changer."