WASHINGTON, Sept 28 — The artificial intelligence revolution is fully underway, but soaring demand for its most crucial component has startups scratching their heads on how they...
WASHINGTON, Sept 28 — The artificial intelligence revolution is fully underway, but soaring demand for its most crucial component has startups scratching their heads on how they can deliver on AI’s promise.
No company working with the generative AI models that fuel today’s frenzy can get off the ground without Nvidia’s singular product: the latest model is the H100 and its accompanying software. ChatGPT took the world by storm just as Silicon Valley was caught in a nasty hangover from the pandemic when investors threw money at startups, convinced that life had gone irreversibly online.
But as the startups walk away with their VC cash, the money in their pockets will be quickly forked out to Nvidia for GPUs either directly or through providers to bring their AI dreams to execution. The computing needs are so massive that only a few companies can stump up the cash to build one of these state-of-the-art large language models.The ten billion dollars investment by Microsoft into OpenAI is widely understood to be paid out as credits to access purpose-built data centers humming with Nvidia GPUs.
“You’re looking at mid-next year, maybe late next year before you’re actually going to get delivery on new orders. The shortage doesn’t seem to be letting up,” added Wes Cummins, CEO Applied Digital, a company that supplies AI infrastructure.
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