Microsoft is on a mission to become a leader in generative AI by the end of 2024, and it is investing heavily in GPU technology to achieve this goal. According to a document seen by Business Insider, Microsoft aims to accumulate 1.8 million AI chips by the end of 2024, with a significant reliance on purchasing GPUs primarily from Nvidia. The company plans to triple its GPU count by 2024, underscoring its commitment to remaining at the forefront of generative AI advancements. This endeavor comes with a hefty price tag, with projections suggesting that Microsoft will spend around $100 billion on GPUs and data centers from the current fiscal year until 2027.
Microsoft’s representative, Frank Shaw, declined to comment due to the standard quiet period that public companies must observe before releasing earnings reports. However, other tech giants like Meta are also amassing significant GPU stockpiles, contributing to Nvidia’s soaring valuation. Meta CEO Mark Zuckerberg revealed plans to purchase 350,000 Nvidia H100 GPUs in 2024, aiming to amass approximately 600,000 GPUs and equivalent chips by year-end.
Another document obtained by Business Insider highlights Microsoft’s achievement of “record-level GPU capacity” in the latter half of the previous year, although precise figures were omitted. Analysts at DA Davidson estimated that Microsoft spent $4.5 billion on Nvidia chips in the past year. While Microsoft is endeavoring to design its own AI chips to lessen dependence on Nvidia, some within the company remain doubtful due to the substantial gap between the two entities in terms of technological advancement.
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