Nvidia's Big Tech Rivals Put Their Own A.I. Chips on the Table
Briefly

Big tech companies like Amazon, Google, Meta, and Microsoft are taking steps to reduce their dependence on Nvidia, a leading chipmaker in the field of artificial intelligence (AI). These companies are developing their own AI chips to control their own destiny and rein in costs. Nvidia has been unable to meet the high demand for its specialized AI chips, resulting in shortages and price increases. While Nvidia sold 2.5 million chips last year, Google spent $2-3 billion to build its own AI chips, and Amazon spent $200 million. Microsoft has also started testing its first AI chip. By developing their own chips, these tech giants can ensure a stable supply and potentially sell access to their chips to other businesses that use their cloud services.
They cannot build chatbots and other A.I. systems without a special kind of chip that Nvidia has mastered over the past several years.
The boom in generative AI has highlighted the reliance of big tech companies on Nvidia. Amazon's investment in Anthropic, a startup working on AI, was influenced by Anthropic's agreement to build its AI using specialized chips designed by Amazon. This move reflects Amazon's goal of creating a viable competitor to Nvidia. Building their own chips will provide these tech giants with more control and flexibility in the development of AI systems, and could help them reduce costs and address the chip shortages they currently face.
With these chips, the tech giants could control their own destiny. They could rein in costs, eliminate chip shortages and eventually sell access to their chips to businesses that use their cloud services.
Read at www.nytimes.com
[
add
]
[
|
|
]
more Tech industry Briefly
[ Load more ]