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Microsoft Targets Massive AI Chip Acquisition to Fuel AI Revolution

Microsoft is tripling its AI chips (mostly from NVIDIA) by year-end to boost AI performance and cost-effectiveness.


has embarked on an ambitious journey to solidify its leadership in the artificial intelligence (AI) sector by setting a goal to acquire 1.8 million AI chips by the end of the year. This move is aimed at enhancing the performance, cost-effectiveness, and speed of its AI offerings. The initiative was first reported by Business Insider, highlighting Microsoft's commitment to advancing its technological infrastructure to support its growing AI capabilities.

Partnership with NVIDIA and Investment Plans

In a push towards achieving this goal, Microsoft plans to triple its GPU capacity by 2024, with identified as the primary supplier for these critical components. GPUs, or Graphics Processing Units, are essential for processing complex AI algorithms and are at the heart of most AI and tasks. Microsoft's reliance on NVIDIA, a leading manufacturer of AI GPUs, underscores the importance of this partnership in Microsoft's AI strategy. Furthermore, the tech giant has announced plans to invest approximately $100 billion in GPUs and data centers by 2027. This investment is intended to expand the existing infrastructure, ensuring that Microsoft remains at the forefront of the AI revolution.

The Competitive Landscape and Future Directions

The AI chip market is becoming increasingly competitive, with other companies also making significant strides. For instance, during Vision 2024, Intel unveiled its Gaudi 3 AI accelerator, which it claims is 40% more power-efficient than NVIDIA's H100 chip. This development indicates that while NVIDIA is a crucial partner for Microsoft, there are other emerging options in the market that could provide alternative solutions for AI chip requirements.

Microsoft's AI expansion is not limited to technological enhancements. The company is also leveraging AI in manufacturing, aiming to help industries streamline their processes and increase profitability. With its strategic investments and partnerships, Microsoft is positioning itself as a leader in the AI space. However, the success of these endeavors will depend on various factors, including the ability of its suppliers like NVIDIA to meet the high demand for AI chips.

Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.