If you are a gamer, then you need to check out this article. Not that we will be giving out free gaming advice or any top trends, but because you will be amazed to explore the chip race and the battle that is being fought by the major tech giants. In this article, we will be discussing the much-talked-about chip race between Nvidia, Microsoft, Tesla, and more. So, keep reading the article to decode everything.
What is the News?
If you are constantly keeping updates about the latest tech news and want to reveal all the important tech news about technology, then you need to check out this section. The rise of Gen AI has been powered by Nvidia and its power packed and ahead-of-time GPUs. However, there is a demand and supply mismatch, the H100 has become very expensive, and this has called for a trillion dollar profit for Nvidia.
But what’s more?
Well, with this increasing demand for the chips from Nvidia, it is promoting customers from Microsoft, Meta, OpenAI, Amazon, and Google to start working on developing their own AI Processors. Nvidia and other chip makers such as AMD and Intel are now locked in an arms race to release newer, more efficient, and more powerful AI chips.
How is AMD Becoming A Part of the Chip Race?
Well, in the previous section, we talked about AI-powered chips becoming the most trending and emerging part of the Chip race. However, to keep pace with Nvidia, the chip maker AMD is not leaving any stone unturned to gain the upper hand in this chip race
AMD revealed the Instinct MI300X accelerator and the Instinct M1300A accelerated processing unit (APU) which it says is trained and runs on LLMs. As per AMD, the MI300X has 1.5 times more memory capacity than the previous M1250X version. Both new products have better memory capacity and are more energy-efficient than their predecessors,
In fact, AMD even partnered with Microsoft to put the MI300X in its Azure virtual machines, while on the other hand Meta announced that it will be applying the deployed MI300 processors in its data centers.
This battle of the chips is getting quite fierce and competitive.
Intel’s loss in the Chip Race
While the big chip makers like Nvidia, Meta and AMD are gearing up to run on the chip race, the chip maker Intel is facing quite a significant loss. Intel recently announced one of the largest corporate losses of all time which stands at $16.6 billion and is ten times worse than the $1.6 billion loss than the quarter before. However, in the recent past year, it has announced a loss of $14.3 billion in revenue, and its executives are talking about simplifying the company so it can win in the future.
As it is quite evident that Intel is losing and is under heaps of losses, it will be interesting to see where it stands in this fierce chip race.
How is Microsoft Taking on the Chip Race?
As we have mentioned in the previous section, Microsoft is prompted to offer customers Gen AI-powered chips, however, what stands at the core of this is that it is making Custom AI chips for training large language models and potentially avoiding a costly reliance on the chip maker Nvidia.
If the rumors are true, Microsoft has also built its own Arm-based CPU for cloud workloads. Both custom silicon chips are designed to power its Azure data centers and ready the company and its enterprise customers for a future full of AI. Well, the demand for these chips is quite high, and they are being sold at $40,000 on eBay.
These two chips are both in-house by Microsoft and are combined with a deep overhaul of the entire cloud stack that is optimized for performance, power, and cost. This is one of the most important steps that Microsoft is taking amid this intense chip race and trying to gain the upper hand in offering the best chips to customers.
Open AI and the Chip Race
Well, as open AI is already making waves with its AI tools, it is now taking a step forward by raising funds for building an AI-powered chip. It is aimed at building a ‘network of factories’ for fabrication that would stretch around the globe and will involve the work that they will be partnering with unnamed chip manufacturers. This is one of the most important and trendiest updates that tech enthusiasts can catch up on. The tech Open AI is not only planning to foray into chip making with advanced AI but also is keeping its chip manufacturing partners a secret.
Will this be a strategic advantage for Open AI in this fierce chip race?
Conclusion
As the major tech giants gear up to gain a superior position in the chip race, it would be interesting to see which of the chip makers will be adequately able to strike the right chord and hit the sales graph. With every chip that they manufacture, it would be interesting to see which chip manufacturer is competing head-on with Nvidia, as it has become quite popular with its AI-powered chips. That’s all, folks. I hope the article will help you to get all the information you need.
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