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Nvidia’s AI Chips are More Readily Available, According to Microsoft’s Technology Leader

Kevin Scott, the head of technology at Microsoft, claimed on Wednesday that the business is now more easily able to access the Nvidia chips used to execute artificial intelligence workloads than it was a few months ago.

Scott claimed the market for Nvidia’s graphics processing units (GPUs) is beginning to expand while speaking on stage at the Code Conference in Dana Point, California. Since the ChatGPT chatbot was introduced late last year by Microsoft-backed OpenAi, the GPUs have been in high demand.

The total GPU capacity that the ecosystem could produce was far insufficient to meet demand, according to Scott, who spoke with Nilay Patel of the Verge. “That’s settling. We have more positive news on that front than negative news, which is fantastic. It’s still tight, but it gets better every week.

Microsoft has been quickly integrating generative AI into its own products and selling the technology’s capabilities to customers, much like Google and other tech businesses. Nvidia’s GPUs have been primarily used for training and deploying the underlying AI models, which has limited supply.

Nvidia predicted a 170% increase in sales this quarter over the same period last year. The company’s gross margin increased from 44% to 70% in a year because to its complete dominance of the AI chip market. In comparison to the other S&P 500 companies, Nvidia’s stock price has increased by 190% in 2023.

Source (CNBC)

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