Thanks, Arnab. This quarter we introduced our new family of Pascal-based GPUs, one of our most successful launches ever. We also benefited from both the winding adoption of deep learning and our expanding engagement with hyperscale datacenters around the world as they apply deep learning to all the services they provide. Revenue continued to accelerate, rising 24% to a record $1.43 billion. We saw strong sequential and year-on-year growth across our four platforms, Gaming, Professional Visualization, Datacenter and Automotive. Our business model based on driving GPU compute platforms into highly targeted markets is clearly succeeding. The GPU business was up 25% to $1.2 billion from a year ago. The Tegra Processor Business increased 30% to $166 million. In Q2 our four platforms contributed nearly 89% of revenue, up from 85% a year earlier, and 87% in the preceding quarter. They collectively increased 29% year-over-year. Let's begin with our Gaming platform. Gaming revenue increased 18% year-on-year to $781 million, reflecting the success of our latest integration of Pascal-based GPUs. Demand was strong in every geographic region. The Pascal architecture offers a number of amazing technological advances, and enables unprecedented performance and efficiencies for playing sophisticated AAA gaming titles and driving rich immersive VR experiences. In our most successful launch ever we introduced four major products. They are GeForce GTX 1080, 1070 and 1060 for the enthusiast market, and the TITAN X, the world's fastest consumer GPU for deep learning development, digital content creation and extreme gaming. WIRED magazine called the GTX 1080 an unprecedented piece of electronic precision, one that performs Herculean feats of computational strength. Forbes called GTX 1060, which brings a premium VR experience within reach of many, a fantastic product. And Hardware Canucks described TITAN X as a technological tour de force with frame rates that are simply mind-boggling. The GTX 1080, 1070, 1060 and TITAN X are now in full production and available to consumers worldwide. VR's potential is on vivid display in a new open source game that we released during the quarter. Available on Steam, NVIDIA VR Funhouse is an open source title created with our GamesWorks SDK. It integrates physical simulation into VR along with amazing graphics and precise haptics that you feel like you're actually out at carnival.
Moving to Professional Visualization, Quadro revenue grew to a record $214 million, up 22% year-on-year and up 13% sequentially. Growth came from the high-end of the market for real-time rendering tools and mobile workstations. The M6000 GPU 24 gig, launched earlier this year, is drawing strong interest from a broad range of customers. Digital Domain, a leading special-effects studio, is using Quadro to accelerate productivity for its work on films and commercials, which requires especially tight turnaround times. Engineering giant AECOM and the Yale School of Architecture are using Quadro to accelerate their design and engineering workflows. Last month at SIGGRAPH conference, we introduced a series of new products that embed photorealistic and immersive experience into workflows, incorporating Iray and VR. We launched the Pascal-based Quadro P6000, the most advanced workstation GPU, enabling designers to manipulate complex designs up to twice as fast as before. We demonstrated how deep learning is being brought to the realm of the industrial design to create better products faster. And we launched eight new and updated software libraries such as VRWorks 360 video SDK which brings panoramic video to VR.
Moving to datacenter; revenue reached a record $151 million, more than doubling year-on-year and up 6% sequentially. This impressive performance reflects strong growth in supercomputing, hyperscale datacenters and grid virtualization. Interest in deep learning is surging as industries increasingly seek to harness this revolutionary technology. Hyperscale companies remain fast adopters of deep learning, both for training and real-time inference, particularly for natural lingual processing, video and image analysis. Among them are Facebook, Microsoft, Amazon, Alibaba and Baidu. Major cloud providers are also offering GPU computing for their customers. Microsoft Azure is now using NVIDIA's GPUs to provide computing and graphics virtualization. During the quarter we began shipping Tesla P100, the world's most advanced GPU accelerator, based on the Pascal architecture. Designed to accelerate deep learning training, it allows application performance to scale up to eight GPUs using our NVLink interconnect. We also announced a variant of P100 based on PCI Express that makes it suitable for a wide range of accelerated servers. At our GPU Technology Conference in April, we introduced DGX-1, the world's first deep learning supercomputer. Equipped with eight P100s in a single box, it provides deep learning performance that is equivalent to 250 traditional servers. It comes loaded with NVIDIA software and AI application developers. We are seeing strong interest in DGX-1 from AR researchers and developers across academia, government labs and large enterprises. Two days ago, Jen-Hsun hand-delivered the very first DGX-1 production model to the Open AI Institute. They plan to use this system in part to build autonomous agents like chatbots, cars and robots. Broader deliveries will commence later this quarter. We will be talking more about deep learning later this year at regional versions of our GPU Technology Conference set for eight cities around the world, among them, Beijing, Amsterdam, Tokyo and Seoul, as well as Washington D.C. Our GRID graphics virtualization business more than doubled in the quarter. Adoption is accelerating across a variety of industries, particularly automotive and AEC, among customers out of this quarter was Statoil, a Norwegian oil and gas company.
Finally in automotive, revenue increased to a record $119 million, up 68% year-over-year and up 5% sequentially, driven by premium infotainment and digital cockpit features in mainstream cars. Our effort to help partners develop self-driving cars continues to accelerate. We have started to ship our DRIVE PX 2 automotive supercomputer to the 80-plus companies using both our hardware and DriveWorks software to develop autonomous driving technologies. We remain on track to ship our autopilot solution based on the DRIVE platform. Beyond our four platforms, our OEM and IP business was $163 million, down 6% year-on-year in line with mainstream PC demand.
Now, turning to the rest of the income statement. We had record GAAP gross margin of 57.9%, while non-GAAP gross margin was 58.1%. These reflect the strength of our GeForce gaming GPUs, the success of our platform approach, and strong demand for deep learning.
GAAP operating expenses were $509 million, down 9% from a year earlier. Non-GAAP operating expenses were $448 million, up 6% from a year earlier. This reflects increased hiring in R&D and marketing expenses, partially offset by lower legal fees. GAAP operating income for the second quarter was $317 million, compared to $76 million a year earlier. Non-GAAP operating income was $382 million, up 65%. Non-GAAP operating margins improved 680 basis points from a year ago to 26.8%.
Now, turning to the outlook for the third quarter of fiscal 2017. We expect revenue to be $1.68 billion plus or minus 2%. Our GAAP and non-GAAP gross margins are expected to be 57.8% and 58% respectively, plus or minus 50 basis points. GAAP operating expenses are expected to be approximately $530 million. Non-GAAP operating expenses are expected to be approximately $465 million. And GAAP and non-GAAP tax rates for the third quarter of fiscal 2017 are both expected to be 21% plus or minus 1%. Further financial details are included in the CFO commentary and other information available on our IR website.
We will now open the call for questions. Operator, could you please poll for questions? Thank you. Operator?