NVIDIA will undoubtedly benefit as we move towards the most significant technological revolution with AI. Due to the growing demand for GPUs, the company was ranked as the world’s most profitable semiconductor chip brand for the third quarter of 2023.
This achievement translates to a staggering $18.12 billion in revenue and a remarkable profit of $10.42 billion.
An Investment by Microsoft and OpenAI to Become Independent from NVIDIA
As more companies adopt generative AI, we are approaching a point where NVIDIA cannot meet the alarmingly high demand for AI chips. That’s why depending on NVIDIA is becoming risky these days.
To address this, Microsoft and OpenAI have joined forces to build a data center to support their high demand for chips, facilitate faster AI advancements and development, and reduce their dependence on NVIDIA for chips.
The project could cost up to 100 billion and is expected to launch in 2028. It will also feature an AI-powered supercomputer called Stargate. Additionally, Microsoft claims to be working on a smaller supercomputer for OpenAI, which is scheduled to ship in 2026.
With this move, it is clear that Microsoft doesn’t plan to move away from its AI-focused efforts anytime soon. The data center will help improve and support the computing needs of companies. According to our sister site, TechRadar, the 100 billion invested in this project is enough to cover Microsoft’s expenses on servers and equipment for an entire year.
The Stargate Project
The Stargate project will have more computing power compared to the existing power supplied by Microsoft to OpenAI from its data centers. While this sounds impressive, reports indicate that there will soon not be enough electricity to power AI advancements. Reaching such heights in computing will require more energy.
