Microsoft Acquires 500,000 NVIDIA GPUs in Major 2024 Deal

In a significant move in 2024, Microsoft has become NVIDIA’s top customer for AI GPUs, purchasing nearly 500,000 units over the course of the year. This investment has positioned Microsoft well ahead of competitors like Meta, Google, and Amazon.

The demand for NVIDIA GPUs, particularly the H100 and H20 models, is driven by their essential role in powering artificial intelligence technologies. These chips are used in data centers to run models from OpenAI, a company in which Microsoft is a key partner and investor. The GPUs are crucial for training and deploying increasingly advanced AI systems, meeting the growing demand for services like ChatGPT and other AI tools.

Microsoft’s investment in 2024 totals around $30 billion, significantly outpacing Meta, Amazon, and Google, who purchased fewer GPUs during the same period. This move not only shows Microsoft’s commitment to enhancing its AI infrastructure but also showcases its forward-thinking approach in the tech industry.

Beyond simply buying in bulk, Microsoft is also working on developing its own in-house chips called Maia, announced in late 2023. This strategic decision aims to reduce the company’s reliance on NVIDIA in the long run while still maintaining a competitive edge over rivals in the AI sector.

While Meta, Amazon, and other tech giants are also developing their own chips, Microsoft’s substantial investment in GPUs sets it apart as a leader in AI technology. The company’s partnership with OpenAI and its internal chip developments indicate its readiness for the next phase of the technological revolution.

As major tech companies scramble to secure GPUs for their AI initiatives, it’s clear that AI has become a top priority across the industry. Microsoft’s significant lead in GPU purchases highlights its strategic position in the AI landscape, setting the stage for potential future developments and competition in the sector.