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Technical Director of Microsoft Says About Improving Supply of Nvidia’s AI Сhips

Microsoft Technical Director Kevin Scott last Wednesday, September 27, announced the facilitation of this company’s access to Nvidia chips, which are necessary for managing artificial intelligence workloads.

Technical Director of Microsoft Says About Improving Supply of Nvidia’s AI Сhips

Compared to the state of affairs that was observed a few months ago, the technology giant is currently operating within the framework of a more favorable situation with the supply of microcircuits from the manufacturer, whose material well-being has improved significantly amid the hype around AI.

During a speech at the Code Conference in Dana Point, California, Kevin Scott stated that the Nvidia GPU market is scaling. In this case, expansion is not a process with a sharp growth rate, but it is still being carried out.

The dynamic of demand for graphics processes demonstrated an impressive jump and began to demonstrate what can be described as an upward movement, after at the end of last year, the Microsoft-supported startup OpenAI launched an artificial intelligence-based chatbot called ChatGPT.

Kevin Scott, during a conversation with media representatives, said that relatively recently, the indicator of consumer demand for products significantly exceeded the supply of GPU capacities that the entire ecosystem can produce. The corresponding state of affairs was observed in the first half of this year. According to Kevin Scott, the problem is currently being solved, and the situation is getting better every week, but it still continues to be tense. Also, according to him, there will be more good news than bad news in this industry in the future.

Microsoft, like Google and other companies that have the status of technology giants, is currently actively integrating artificial intelligence into its business structure. AI is present in the developments that make up the product line of the company from Redmond, Washington. Microsoft also sells the capabilities of artificial intelligence technologies to its customers. The training and deployment of basic machine intelligence models mainly rely on Nvidia GPUs. This feature of the process has caused such a negative situation as a shortage of supplies.

Last month, Nvidia announced that by the end of the current quarter, its revenue could show an increase of 170% compared to the previous year. This company, according to experts, currently actually controls the market of artificial intelligence chips. Confirmation of this assessment is the fact that the gross profit of the firm for the year increased from 44% to 70%. The company’s share price is projected to grow by 190% this year.

In May, Kevin Scott said that one of his responsibilities is to control the budget of graphics processors at Microsoft. He described this direct of his activity as a terrible work. This week, Kevin Scott announced an improvement in the situation related to the performance of these duties. According to him, in the spring, the perception of generative artificial intelligence technology was somewhat different and contained a kind of greater sense of novelty. He also mentioned the wide public attention to these innovations, which have the potential to transform the space of human life.

Nvidia plans to increase the volume of product deliveries on a quarterly basis over the next year. This was announced by Colette Kress during last month’s earnings report.

Microsoft is currently interacting with OpenAI. The tech giant provides a startup with access to cloud computing services Azure. Microsoft also plans to launch the sale of access to its 365 Copilot for large organizations. The technology giant intends to start subscribing to software in November in order to increase the level of productivity.

Kevin Scott did not comment on media reports that Microsoft is developing a custom artificial intelligence chip, but spoke about the company’s internal work in the silicon area, noting significant amounts of investment in the corresponding sphere. He stated that the tech giant is committed to making sure that the best choice is made regarding how the brand builds AI systems using all available options. According to him, the best option in this context that has been available over the past few years has been Nvidia.

As we have reported earlier, Microsoft to Offer Legal Safeguards AI Users in Copyright Cases.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.