Microsoft’s $100 Billion Bet on Generative AI: Can the Company Reduce Dependence on Nvidia?

Microsoft is aiming to become a leader in the field of generative AI by investing heavily in GPUs and data centers. The company has set an internal target to accumulate 1.8 million AI chips by the end of 2024, with plans underway to triple the number of GPUs it has by 2024. Microsoft is focused on making generative AI faster, better, and cheaper, with a significant reliance on purchasing GPUs primarily from Nvidia.

Despite the high cost of staying at the forefront of generative AI, Microsoft is committed to investing $100 billion in GPUs and data centers from the current fiscal year until 2027. Other major tech companies are also stockpiling GPUs, contributing to Nvidia’s impressive valuation of over $2 trillion. Meta’s CEO announced plans to purchase hundreds of thousands of Nvidia H100 GPUs in 2024, while Nvidia continues to innovate with its latest GPU, the Blackwell.

However, some employees at Microsoft are skeptical about the company’s ability to reduce its reliance on Nvidia and design its own AI chips internally. With fast-paced advancements in AI technology, staying competitive requires constant innovation and investment. As such, employees and insiders with valuable insights are encouraged to share their perspectives with Business Insider. Those willing to contribute can contact Ashley Stewart via email or secure message for further discussion.