Microsoft acquires twice as many Nvidia AI chips as tech rivals
Microsoft has acquired 485,000 Nvidia AI chips, doubling its competitors' purchases. The demand for these chips has surged due to AI advancements, with tech companies projected to spend $229 billion on servers in 2024.
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Microsoft has significantly increased its acquisition of Nvidia's AI chips, purchasing approximately 485,000 Hopper chips this year, which is double the amount acquired by its closest competitors, including Meta, Amazon, and Google. This strategic move is part of Microsoft's broader investment in artificial intelligence infrastructure, particularly as it supports OpenAI, in which it has invested $13 billion. The demand for Nvidia's advanced graphics processing units (GPUs) has surged since the launch of ChatGPT, leading to a competitive landscape among tech giants for these critical components. While Microsoft leads in chip acquisitions, other companies like ByteDance and Tencent have also made substantial orders, despite U.S. export restrictions. Analysts predict that tech companies will spend around $229 billion on servers in 2024, with Nvidia expected to capture a significant share of this market. Microsoft is also developing its own AI chips, but it remains heavily reliant on Nvidia's technology for its AI services, including its Azure cloud platform. The competition in the AI chip market is intensifying, with companies like AMD and Google also ramping up their chip production to reduce dependence on Nvidia.
- Microsoft acquired 485,000 Nvidia AI chips, outpacing rivals.
- The demand for Nvidia chips has surged due to AI advancements.
- Microsoft has invested $13 billion in OpenAI, enhancing its AI capabilities.
- Tech companies are projected to spend $229 billion on servers in 2024.
- Competition in the AI chip market is increasing, with AMD and Google developing alternatives.
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9 comments"Omdia analyses companies’ publicly disclosed capital spending, server shipments and supply chain intelligence to calculate its estimates."
That could explain a large part of the gap.
Edit: it looks like Microsoft announced their own last year, but I can imagine they may be behind the curve in capability and scale out compared to the others
What will they accomplish with the things? Why even think about that part? Probably AI. Selling premium GEMMs, what a trick. Bah. Hopefully TSMC got a really good cut, they are at least doing some interesting engineering.
https://finance.yahoo.com/news/microsoft-stock-receives-rare...
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