Microsoft surges ahead in AI race with massive Nvidia chip acquisition

Microsoft buys 485,000 Nvidia chips, boosting AI infrastructure.

: Microsoft has purchased 485,000 Nvidia Hopper chips this year, significantly surpassing rivals like Meta, Amazon, and Google. This acquisition supports Microsoft's AI initiatives and deep partnership with OpenAI, enhancing its data center capabilities. Chinese companies ByteDance and Tencent also made substantial purchases of Nvidia chips, although in smaller quantities.

Microsoft has taken a dominant position in the AI chip market by acquiring 485,000 Nvidia Hopper chips throughout the year, a figure more than double that of their closest competitors in both the United States and China. This extensive acquisition supports Microsoft's ongoing tech advancements and its significant stake in OpenAI, enabling expansion of its data center infrastructure for AI services and Azure platform cloud solutions.

The demand for Nvidia's advanced GPUs continues to far exceed supply, a situation persisting for almost two years, pushing Microsoft ahead in AI infrastructure development. China's ByteDance and Tencent also placed major orders of approximately 230,000 chips each, covering newer H20 models tailored to meet US export limitations.

Despite its current advantage, Microsoft is mindful that building world-class AI infrastructure requires more than just high-end chips. The necessity for integrated solutions including storage, software, and host management components is emphasized by Microsoft's senior director, Alistair Speirs, highlighting the complexities involved in ensuring robust data center infrastructure.

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