Microsoft is definitely filling Nvidia's pockets!

© Nvidia

Microsoft is increasing its efforts to stay at the forefront of artificial intelligence (AI) and not be left behind by the competition. This year, the Redmond firm bought twice as many processors to Nvidia than its fiercest rivals.

Microsoft does not want to be overtaken

According to data from the firm Omdia analysis, It has purchased 485,000 H100 chips, an artificial intelligence accelerator. With this model selling for around $30,000, this represents about 20% of Nvidia's revenue this year. For comparison, Meta comes in second with 224,000 units, followed by Amazon and Google with 196,000 and 169,000 chips respectively.

Omdia obtained this information based on supply chain data, publicly available capital expenditures and server shipment data. It reflects Microsoft’s immense ambitions as it strives to remain at the forefront of artificial intelligence (AI).

Since its massive multi-billion dollar investment in OpenAI, the company has been rolling out the technology across its products. Just a few weeks ago, it even signed a deal to reopen the Three Mile Island nuclear power plant and acquire all of the energy produced by the plant to power its data centers.

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Satya Nadella at Microsoft Build 2024. @Microsoft

Too Much Spending ?

That's, For now, a winning strategy. Microsoft is currently the second most valuable company in the world behind Apple, although some analysts have raised concerns about the company's astronomical spending to support its efforts. Developing its own chip AI, Maia, should also allow it to reduce its dependence on Nvidia.

As a reminder, the boom in generative AI has literally caused the manufacturer's turnover to explode, as it almost completely dominates the field of artificial intelligence accelerators. Tech giants are now looking to design their own models, but this is a long-term job, especially to achieve results as convincing as those offered by Nvidia.

Another notable point from Omdia's data is that Chinese companies ByteDance and Tencent have each ordered around 230,000 Nvidia chips, including the H20, a restricted version of the H100 specially designed for the Chinese market. This testifies to the aspirations of the parent company of TikTok, which also imagines itself as a leader in AI.

• This year, Microsoft bought twice as many AI chips from Nvidia as its biggest rivals, including Meta, Amazon, and Google.
• This figure reflects the company’s immense ambitions, but above all the efforts it is making to avoid being left behind in the race for generative AI.
• At the same time, Microsoft is developing its own AI chip.

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