Microsoft has set a target to acquire 1.8 million AI chips by the end of 2024, according to a document reviewed by Business Insider. The company is focused on improving its generative AI capabilities, with a significant emphasis on purchasing GPUs primarily from Nvidia. By 2024, Microsoft aims to triple the number of GPUs it currently owns, with plans in place for partnerships with OpenAI.
However, staying at the forefront of generative AI comes with a high cost. Microsoft estimates that it will spend around $100 billion on GPUs and data centers from the current fiscal year until 2027. Despite this substantial investment, Microsoft remained tight-lipped about these details during a quiet period before reporting earnings.
Other major tech companies are also investing heavily in GPU technology, contributing to Nvidia’s impressive valuation of over $2 trillion. Meta’s CEO has announced plans to purchase hundreds of thousands of Nvidia H100 GPUs in 2024, while Nvidia continues to innovate with its latest GPU offering, the Blackwell, and powerful H100s already available in the market.
While Microsoft aims to reduce its dependence on Nvidia by developing its own AI chips internally, some employees are skeptical due to the company’s slower progress in this area compared to Nvidia. Keeping up with the fast pace of AI technology requires constant innovation and investment from companies like Microsoft.
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