Microsoft has set an internal target to acquire 1.8 million AI chips by the end of 2024, as revealed in a document obtained by Business Insider. The company's goal is to enhance generative AI capabilities by making them faster, more efficient, and cost-effective. To achieve this, Microsoft heavily relies on purchasing graphic processing units (GPUs) primarily from Nvidia, with plans to triple the number of GPUs in its possession by 2024.
Microsoft, in collaboration with OpenAI, is a key player in the rapidly growing field of generative AI. However, staying at the forefront of this technology comes at a significant cost. Over the period from the current fiscal year to 2027, Microsoft anticipates spending approximately $100 billion on GPUs and data centers, according to sources familiar with the company's plans.
When approached for comment, Microsoft's spokesperson declined, citing the standard quiet period that public companies must adhere to before reporting earnings. Meanwhile, other tech giants are also stockpiling GPUs, contributing to Nvidia's soaring valuation, which now exceeds $2 trillion.
Meta's CEO, Mark Zuckerberg, announced plans for the social media company to acquire around 350,000 Nvidia H100 GPUs in 2024, with a target of reaching approximately 600,000 of these high-performance chips by the year's end. Nvidia recently introduced its latest and fastest GPU, Blackwell, while the H100s are already considered among the most powerful GPUs available, priced at an estimated $30,000 each.
Another document obtained by Business Insider revealed that Microsoft had significantly increased its GPU capacity in the latter half of the previous year, although specific figures were not disclosed. Analysts at DA Davidson estimated that Microsoft spent $4.5 billion on Nvidia chips in the previous year, a figure that aligns closely with information provided by a Microsoft executive.
Internally, Microsoft is working on developing its own AI chips to reduce its dependence on Nvidia. However, some employees express skepticism due to the company lagging behind Nvidia, given the rapid advancements in the field. Microsoft's efforts to innovate in AI chip design are ongoing, aiming to keep pace with industry leaders.
For individuals with insights or information to share on Microsoft's AI chip initiatives, Business Insider encourages contacting Ashley Stewart via email ([email protected]) or sending a secure message from a non-work device via Signal (+1-425-344-8242).
