Elon Musk Loaded on Nvidia GPUs for X, xAI and Tesla.
Meanwhile, Chinese tech giants are reportedly scrambling to buy up to $5 billion worth of chips.
Some warn that a shortage could soon occur, as demand for the technology outstrips supply.
It seems everyone and anyone wants to snap up nvidiaSemiconductor chips these days.
Sales of the company’s GPUs have skyrocketed since then ChatGPT has sparked an AI crazeand prompted an excellent performance in the first-quarter earnings and Raising its total value to over $1 trillion in May.
But there are signs emerging that there may not be enough Nvidia chips to go around, with several senior executives warning that demand is vastly outstripping supply.
The huge increase in interest in artificial intelligence has been a major factor in driving demand for Nvidia semiconductors.
AI products such as ChatGPT are powered by mainframe computers. Those that run on specialized GPUs — and Nvidia has a 95% share of that market, according to data from New Street Research.
Thursday , financial times It is reported that four Chinese technology giants who have stepped up their efforts in the field of artificial intelligence have been ordered $5 billion worth of the company’s GPUs Amid growing concerns that the Biden administration will restrict their access to US exports.
Elon Musk is a fan too – he’s been buying thousands of chips for his generative artificial intelligence xAI project, from the inside Reported back in April, he confirmed that “Twitter (now X) and Tesla are definitely buying GPUsSame month.
Perhaps the strongest sign of surging demand for Nvidia chips came in May, when it issued an excellent second-quarter revenue forecast that beat Wall Street forecasts by 50%.
The findings sent stock prices up 24% on May 25, adding about $190 billion to the tech giant’s total market capitalization in one day.
But there are signs that Nvidia may not be able to produce enough GPUs to keep up.
“I think it’s not at all controversial to say that, at least in the short term, demand is outpacing supply, and that’s true of everyone,” Amazon Web Services CEO Adam Celebski said the edge Tuesday, referring to the high-end H100 chips needed to train AI models.
Meanwhile, Cloudflare CEO Matthew Prince acknowledged “a lot of limitations in acquiring” the H100s in its second-quarter earnings call earlier this month, while the cloud service provider CloudWeaveCTO said in an interview with Barron That the chips can be sold until next year.
As Insider reported in June, Nvidia GPUs are already in short supply and very expensive Capital owners started buying them outright for their portfolio companies.
So while it’s indisputable that Nvidia’s chip business is booming, the next challenge for the new member of the so-called “Magnificent Seven” tech stocks You may be keeping up with this explosion in demand.
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