Microsoft has set an ambitious target of acquiring 1.8 million AI chips by the end of 2024, as per a review of a company document by Business Insider. The company’s focus is on making generative AI faster, more efficient, and affordable, with a significant reliance on purchasing GPUs primarily from Nvidia.
Microsoft is well on track to triple the number of GPUs it currently holds by 2024 through partnerships with OpenAI. However, the cost of staying ahead in generative AI technology is high, with Microsoft estimating around $100 billion in future spending on GPUs and data centers from the current fiscal year until 2027. Despite this significant investment, Microsoft remains tight-lipped about these details due to the quiet period that public companies must adhere to before reporting earnings.
Other major tech companies are also stockpiling GPUs, contributing to Nvidia’s impressive valuation of over $2 trillion. Meta’s CEO has announced plans to purchase hundreds of thousands of Nvidia H100 GPUs in 2024, while Nvidia continues to innovate with its latest GPU, the Blackwell. Meanwhile, powerful H100s are already available in the market.
Microsoft aims to reduce its reliance on Nvidia by developing its own AI chips internally but faces skepticism from some employees who feel that the company lags behind Nvidia in this area. With rapid advancements in AI technology, staying competitive requires continuous innovation and investment.
As Microsoft continues to push boundaries in AI development, employees and insiders with valuable insights are encouraged to share their perspectives with Business Insider. Those interested can contact Ashley Stewart via email or secure message for further discussion.