The availability of Nvidia’s AI chips is increasing, according to Kevin Scott, chief technology officer of Microsoft, making it simpler for the company to obtain the chips it requires for its Azure cloud computing platform. The increased supply, according to Scott, is the result of the generative AI hoopla having subsided.
Graphics processing units (GPUs) from Nvidia are gradually becoming more available, according to Scott. Since the launch of the ChatGPT chatbot by Microsoft-supported OpenAI at the end of last year, GPUs have been in high demand.
Last month, Nvidia stated that it anticipated revenue to increase by 170% this quarter. Because of its monopoly on the artificial intelligence chip industry, the company’s gross profit margins have increased from 44% to 70% in just one year. The value of Nvidia’s shares has increased.
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Generative AI is a type of artificial intelligence that can create new content, such as text, images, and music. It has become increasingly popular in recent years, and this has led to a high demand for Nvidia’s AI chips, which are well-suited for running generative AI models.
Scott’s comments are a positive sign for the AI industry. They suggest that the supply of AI chips is improving, which will make it easier for companies to develop and deploy AI applications.
According to finance director Colette Kress on the most recent results call, Nvidia has revealed plans to increase its supply with each passing quarter till next year.
Microsoft is also developing its own custom AI chips, codenamed Athena, which are designed to be more efficient and cost-effective than Nvidia’s GPUs for certain AI tasks. However, Microsoft has said that it does not see Athena as a replacement for Nvidia’s GPUs, but rather as a complementary technology.
For both businesses, the relationship between Microsoft and Nvidia is crucial. Nvidia needs Microsoft to help it sell its GPUs to enterprise clients, and Microsoft needs Nvidia’s GPUs to power its Azure AI services.